Correlation Between Capri Holdings and Stillwater Critical
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Stillwater Critical 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 Stillwater Critical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Stillwater Critical Minerals, you can compare the effects of market volatilities on Capri Holdings and Stillwater Critical 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 Stillwater Critical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Stillwater Critical.
Diversification Opportunities for Capri Holdings and Stillwater Critical
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Capri and Stillwater is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Stillwater Critical Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stillwater Critical 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 Stillwater Critical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stillwater Critical has no effect on the direction of Capri Holdings i.e., Capri Holdings and Stillwater Critical go up and down completely randomly.
Pair Corralation between Capri Holdings and Stillwater Critical
Given the investment horizon of 90 days Capri Holdings is expected to generate 0.45 times more return on investment than Stillwater Critical. However, Capri Holdings is 2.24 times less risky than Stillwater Critical. It trades about 0.26 of its potential returns per unit of risk. Stillwater Critical Minerals is currently generating about -0.15 per unit of risk. If you would invest 1,974 in Capri Holdings on September 1, 2024 and sell it today you would earn a total of 367.00 from holding Capri Holdings or generate 18.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Capri Holdings vs. Stillwater Critical Minerals
Performance |
| Timeline |
| Capri Holdings |
| Stillwater Critical |
Capri Holdings and Stillwater Critical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Stillwater Critical
The main advantage of trading using opposite Capri Holdings and Stillwater Critical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Stillwater Critical 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 Stillwater Critical will offset losses from the drop in Stillwater Critical's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Stillwater Critical vs. Grid Metals Corp | Stillwater Critical vs. Strikepoint Gold | Stillwater Critical vs. New Age Metals | Stillwater Critical vs. Grande Portage Resources |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |