Correlation Between Capri Holdings and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Amundi Index 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 Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Amundi Index Solutions, you can compare the effects of market volatilities on Capri Holdings and Amundi Index 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 Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Amundi Index.
Diversification Opportunities for Capri Holdings and Amundi Index
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Capri and Amundi is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions 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 Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Capri Holdings i.e., Capri Holdings and Amundi Index go up and down completely randomly.
Pair Corralation between Capri Holdings and Amundi Index
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Amundi Index. In addition to that, Capri Holdings is 3.5 times more volatile than Amundi Index Solutions. It trades about -0.06 of its total potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.04 per unit of volatility. If you would invest 5,129 in Amundi Index Solutions on November 28, 2024 and sell it today you would earn a total of 528.00 from holding Amundi Index Solutions or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.79% |
| Values | Daily Returns |
Capri Holdings vs. Amundi Index Solutions
Performance |
| Timeline |
| Capri Holdings |
| Amundi Index Solutions |
Capri Holdings and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Amundi Index
The main advantage of trading using opposite Capri Holdings and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Amundi Index 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 Amundi Index will offset losses from the drop in Amundi Index's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Amundi Index vs. Amundi EUR High | Amundi Index vs. Amundi MSCI Pacific | Amundi Index vs. Amundi MSCI Europe | Amundi Index vs. Amundi Index Solutions |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |