Correlation Between Capri Holdings and Matthews India
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Matthews India at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Capri Holdings and Matthews India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Matthews India Fund, you can compare the effects of market volatilities on Capri Holdings and Matthews India and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Capri Holdings with a short position of Matthews India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Matthews India.
Diversification Opportunities for Capri Holdings and Matthews India
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Capri and Matthews is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Matthews India Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews India and Capri Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Capri Holdings are associated (or correlated) with Matthews India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews India has no effect on the direction of Capri Holdings i.e., Capri Holdings and Matthews India go up and down completely randomly.
Pair Corralation between Capri Holdings and Matthews India
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Matthews India. In addition to that, Capri Holdings is 3.62 times more volatile than Matthews India Fund. It trades about -0.31 of its total potential returns per unit of risk. Matthews India Fund is currently generating about -0.13 per unit of volatility. If you would invest 2,345 in Matthews India Fund on November 28, 2024 and sell it today you would lose (58.00) from holding Matthews India Fund or give up 2.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capri Holdings vs. Matthews India Fund
Performance |
| Timeline |
| Capri Holdings |
| Matthews India |
Capri Holdings and Matthews India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Matthews India
The main advantage of trading using opposite Capri Holdings and Matthews India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Matthews India can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Matthews India will offset losses from the drop in Matthews India's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Matthews India vs. Matthews China Fund | Matthews India vs. Matthews Pacific Tiger | Matthews India vs. Eaton Vance Greater | Matthews India vs. Morgan Stanley India |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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