Correlation Between Capri Holdings and SNM Gobal
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and SNM Gobal 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 SNM Gobal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and SNM Gobal Holdings, you can compare the effects of market volatilities on Capri Holdings and SNM Gobal 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 SNM Gobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and SNM Gobal.
Diversification Opportunities for Capri Holdings and SNM Gobal
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Capri and SNM is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and SNM Gobal Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNM Gobal Holdings 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 SNM Gobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNM Gobal Holdings has no effect on the direction of Capri Holdings i.e., Capri Holdings and SNM Gobal go up and down completely randomly.
Pair Corralation between Capri Holdings and SNM Gobal
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the SNM Gobal. But the stock apears to be less risky and, when comparing its historical volatility, Capri Holdings is 28.7 times less risky than SNM Gobal. The stock trades about -0.05 of its potential returns per unit of risk. The SNM Gobal Holdings is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 0.00 in SNM Gobal Holdings on November 28, 2024 and sell it today you would earn a total of 0.01 from holding SNM Gobal Holdings or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 35.54% |
| Values | Daily Returns |
Capri Holdings vs. SNM Gobal Holdings
Performance |
| Timeline |
| Capri Holdings |
| SNM Gobal Holdings |
Capri Holdings and SNM Gobal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and SNM Gobal
The main advantage of trading using opposite Capri Holdings and SNM Gobal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, SNM Gobal 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 SNM Gobal will offset losses from the drop in SNM Gobal's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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