Correlation Between Capri Holdings and Rose Hill
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Rose Hill 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 Rose Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Rose Hill Acquisition, you can compare the effects of market volatilities on Capri Holdings and Rose Hill 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 Rose Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Rose Hill.
Diversification Opportunities for Capri Holdings and Rose Hill
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Capri and Rose is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Rose Hill Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rose Hill Acquisition 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 Rose Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rose Hill Acquisition has no effect on the direction of Capri Holdings i.e., Capri Holdings and Rose Hill go up and down completely randomly.
Pair Corralation between Capri Holdings and Rose Hill
If you would invest 3.38 in Rose Hill Acquisition on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Rose Hill Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Capri Holdings vs. Rose Hill Acquisition
Performance |
| Timeline |
| Capri Holdings |
| Rose Hill Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Capri Holdings and Rose Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Rose Hill
The main advantage of trading using opposite Capri Holdings and Rose Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Rose Hill 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 Rose Hill will offset losses from the drop in Rose Hill's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Rose Hill vs. National Energy Services | Rose Hill vs. Oxbridge Re Holdings | Rose Hill vs. PAVmed Series Z |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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