Correlation Between Capri Holdings and Private Equity
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Private Equity 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 Private Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Private Equity Holding, you can compare the effects of market volatilities on Capri Holdings and Private Equity 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 Private Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Private Equity.
Diversification Opportunities for Capri Holdings and Private Equity
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Capri and Private is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Private Equity Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Private Equity Holding 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 Private Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Private Equity Holding has no effect on the direction of Capri Holdings i.e., Capri Holdings and Private Equity go up and down completely randomly.
Pair Corralation between Capri Holdings and Private Equity
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Private Equity. In addition to that, Capri Holdings is 2.08 times more volatile than Private Equity Holding. It trades about -0.26 of its total potential returns per unit of risk. Private Equity Holding is currently generating about -0.07 per unit of volatility. If you would invest 7,580 in Private Equity Holding on November 27, 2024 and sell it today you would lose (180.00) from holding Private Equity Holding or give up 2.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Capri Holdings vs. Private Equity Holding
Performance |
| Timeline |
| Capri Holdings |
| Private Equity Holding |
Capri Holdings and Private Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Private Equity
The main advantage of trading using opposite Capri Holdings and Private Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Private Equity 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 Private Equity will offset losses from the drop in Private Equity's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Private Equity vs. Orior AG | Private Equity vs. HIAG Immobilien Holding | Private Equity vs. Bellevue Group AG | Private Equity vs. Feintool International Holding |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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