Correlation Between Capri Holdings and Lysander Slater
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Lysander Slater 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 Lysander Slater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Lysander Slater Preferred Share, you can compare the effects of market volatilities on Capri Holdings and Lysander Slater 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 Lysander Slater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Lysander Slater.
Diversification Opportunities for Capri Holdings and Lysander Slater
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Capri and Lysander is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Lysander Slater Preferred Shar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lysander Slater Pref 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 Lysander Slater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lysander Slater Pref has no effect on the direction of Capri Holdings i.e., Capri Holdings and Lysander Slater go up and down completely randomly.
Pair Corralation between Capri Holdings and Lysander Slater
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Lysander Slater. In addition to that, Capri Holdings is 11.46 times more volatile than Lysander Slater Preferred Share. It trades about -0.03 of its total potential returns per unit of risk. Lysander Slater Preferred Share is currently generating about 0.11 per unit of volatility. If you would invest 915.00 in Lysander Slater Preferred Share on September 1, 2024 and sell it today you would earn a total of 54.00 from holding Lysander Slater Preferred Share or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Capri Holdings vs. Lysander Slater Preferred Shar
Performance |
| Timeline |
| Capri Holdings |
| Lysander Slater Pref |
Capri Holdings and Lysander Slater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Lysander Slater
The main advantage of trading using opposite Capri Holdings and Lysander Slater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Lysander Slater 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 Lysander Slater will offset losses from the drop in Lysander Slater's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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