Correlation Between Capri Holdings and Global Sukses
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Global Sukses 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 Global Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Global Sukses Solusi, you can compare the effects of market volatilities on Capri Holdings and Global Sukses 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 Global Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Global Sukses.
Diversification Opportunities for Capri Holdings and Global Sukses
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Capri and Global is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Global Sukses Solusi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Sukses Solusi 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 Global Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Sukses Solusi has no effect on the direction of Capri Holdings i.e., Capri Holdings and Global Sukses go up and down completely randomly.
Pair Corralation between Capri Holdings and Global Sukses
Given the investment horizon of 90 days Capri Holdings is expected to generate 1.01 times more return on investment than Global Sukses. However, Capri Holdings is 1.01 times more volatile than Global Sukses Solusi. It trades about -0.02 of its potential returns per unit of risk. Global Sukses Solusi is currently generating about -0.03 per unit of risk. If you would invest 4,423 in Capri Holdings on November 28, 2024 and sell it today you would lose (2,326) from holding Capri Holdings or give up 52.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.53% |
| Values | Daily Returns |
Capri Holdings vs. Global Sukses Solusi
Performance |
| Timeline |
| Capri Holdings |
| Global Sukses Solusi |
Capri Holdings and Global Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Global Sukses
The main advantage of trading using opposite Capri Holdings and Global Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Global Sukses 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 Global Sukses will offset losses from the drop in Global Sukses' long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Global Sukses vs. Trimegah Karya Pratama | Global Sukses vs. Surya Biru Murni | Global Sukses vs. Indo Oil Perkasa | Global Sukses vs. Wira Global Solusi |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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