Correlation Between Capri Holdings and NATIONAL INVESTMENT
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and NATIONAL INVESTMENT 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 NATIONAL INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and NATIONAL INVESTMENT TRUST, you can compare the effects of market volatilities on Capri Holdings and NATIONAL INVESTMENT 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 NATIONAL INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and NATIONAL INVESTMENT.
Diversification Opportunities for Capri Holdings and NATIONAL INVESTMENT
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Capri and NATIONAL is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and NATIONAL INVESTMENT TRUST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATIONAL INVESTMENT TRUST 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 NATIONAL INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATIONAL INVESTMENT TRUST has no effect on the direction of Capri Holdings i.e., Capri Holdings and NATIONAL INVESTMENT go up and down completely randomly.
Pair Corralation between Capri Holdings and NATIONAL INVESTMENT
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the NATIONAL INVESTMENT. But the stock apears to be less risky and, when comparing its historical volatility, Capri Holdings is 1.41 times less risky than NATIONAL INVESTMENT. The stock trades about -0.23 of its potential returns per unit of risk. The NATIONAL INVESTMENT TRUST is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 44,001 in NATIONAL INVESTMENT TRUST on November 28, 2024 and sell it today you would earn a total of 19,400 from holding NATIONAL INVESTMENT TRUST or generate 44.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capri Holdings vs. NATIONAL INVESTMENT TRUST
Performance |
| Timeline |
| Capri Holdings |
| NATIONAL INVESTMENT TRUST |
Capri Holdings and NATIONAL INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and NATIONAL INVESTMENT
The main advantage of trading using opposite Capri Holdings and NATIONAL INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, NATIONAL INVESTMENT 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 NATIONAL INVESTMENT will offset losses from the drop in NATIONAL INVESTMENT's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| NATIONAL INVESTMENT vs. STANDARD BANK LIMITED | NATIONAL INVESTMENT vs. FDH BANK PLC | NATIONAL INVESTMENT vs. NATIONAL BANK OF |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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