Correlation Between Capri Holdings and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Massmutual Select 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 Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Massmutual Select Growth, you can compare the effects of market volatilities on Capri Holdings and Massmutual Select 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 Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Massmutual Select.
Diversification Opportunities for Capri Holdings and Massmutual Select
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Capri and Massmutual is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Massmutual Select Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Growth 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 Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select Growth has no effect on the direction of Capri Holdings i.e., Capri Holdings and Massmutual Select go up and down completely randomly.
Pair Corralation between Capri Holdings and Massmutual Select
Given the investment horizon of 90 days Capri Holdings is expected to generate 1.56 times more return on investment than Massmutual Select. However, Capri Holdings is 1.56 times more volatile than Massmutual Select Growth. It trades about -0.03 of its potential returns per unit of risk. Massmutual Select Growth is currently generating about -0.07 per unit of risk. If you would invest 3,441 in Capri Holdings on September 1, 2024 and sell it today you would lose (1,100) from holding Capri Holdings or give up 31.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Capri Holdings vs. Massmutual Select Growth
Performance |
| Timeline |
| Capri Holdings |
| Massmutual Select Growth |
Capri Holdings and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Massmutual Select
The main advantage of trading using opposite Capri Holdings and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Massmutual Select vs. Investec Emerging Markets | Massmutual Select vs. Eagle Mlp Strategy | Massmutual Select vs. Goldman Sachs Emerging | Massmutual Select vs. Doubleline Emerging Markets |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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