Correlation Between Capri Holdings and Mainstay Income
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Mainstay Income 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 Mainstay Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Mainstay Income Builder, you can compare the effects of market volatilities on Capri Holdings and Mainstay Income 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 Mainstay Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Mainstay Income.
Diversification Opportunities for Capri Holdings and Mainstay Income
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Capri and Mainstay is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Mainstay Income Builder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Income Builder 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 Mainstay Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Income Builder has no effect on the direction of Capri Holdings i.e., Capri Holdings and Mainstay Income go up and down completely randomly.
Pair Corralation between Capri Holdings and Mainstay Income
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Mainstay Income. In addition to that, Capri Holdings is 17.04 times more volatile than Mainstay Income Builder. It trades about -0.12 of its total potential returns per unit of risk. Mainstay Income Builder is currently generating about -0.01 per unit of volatility. If you would invest 2,132 in Mainstay Income Builder on August 29, 2024 and sell it today you would lose (5.00) from holding Mainstay Income Builder or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Capri Holdings vs. Mainstay Income Builder
Performance |
| Timeline |
| Capri Holdings |
| Mainstay Income Builder |
Capri Holdings and Mainstay Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Mainstay Income
The main advantage of trading using opposite Capri Holdings and Mainstay Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Mainstay Income 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 Mainstay Income will offset losses from the drop in Mainstay Income's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Mainstay Income vs. Artisan Small Cap | Mainstay Income vs. Small Pany Growth | Mainstay Income vs. Tax Managed Mid Small | Mainstay Income vs. Us Small Cap |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |