Correlation Between Capri Holdings and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Manning Napier 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 Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Manning Napier Overseas, you can compare the effects of market volatilities on Capri Holdings and Manning Napier 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 Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Manning Napier.
Diversification Opportunities for Capri Holdings and Manning Napier
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Capri and Manning is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Manning Napier Overseas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Overseas 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 Manning Napier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manning Napier Overseas has no effect on the direction of Capri Holdings i.e., Capri Holdings and Manning Napier go up and down completely randomly.
Pair Corralation between Capri Holdings and Manning Napier
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Manning Napier. In addition to that, Capri Holdings is 4.99 times more volatile than Manning Napier Overseas. It trades about -0.02 of its total potential returns per unit of risk. Manning Napier Overseas is currently generating about 0.06 per unit of volatility. If you would invest 2,688 in Manning Napier Overseas on August 30, 2024 and sell it today you would earn a total of 643.00 from holding Manning Napier Overseas or generate 23.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capri Holdings vs. Manning Napier Overseas
Performance |
| Timeline |
| Capri Holdings |
| Manning Napier Overseas |
Capri Holdings and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Manning Napier
The main advantage of trading using opposite Capri Holdings and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Manning Napier 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 Manning Napier will offset losses from the drop in Manning Napier's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Manning Napier vs. Fidelity Advisor Utilities | Manning Napier vs. Jpmorgan Value Advantage | Manning Napier vs. Manning Napier Overseas | Manning Napier vs. Manning Napier Overseas |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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