Correlation Between Capri Holdings and EA Series
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and EA Series 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 EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and EA Series Trust, you can compare the effects of market volatilities on Capri Holdings and EA Series 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 EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and EA Series.
Diversification Opportunities for Capri Holdings and EA Series
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Capri and STXM is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust 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 EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of Capri Holdings i.e., Capri Holdings and EA Series go up and down completely randomly.
Pair Corralation between Capri Holdings and EA Series
Given the investment horizon of 90 days Capri Holdings is expected to generate 3.12 times more return on investment than EA Series. However, Capri Holdings is 3.12 times more volatile than EA Series Trust. It trades about 0.19 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.3 per unit of risk. If you would invest 2,048 in Capri Holdings on August 30, 2024 and sell it today you would earn a total of 304.00 from holding Capri Holdings or generate 14.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capri Holdings vs. EA Series Trust
Performance |
| Timeline |
| Capri Holdings |
| EA Series Trust |
Capri Holdings and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and EA Series
The main advantage of trading using opposite Capri Holdings and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| EA Series vs. Vanguard Mid Cap Index | EA Series vs. Vanguard Extended Market | EA Series vs. iShares Core SP | EA Series vs. iShares Russell Mid Cap |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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