Correlation Between Capri Holdings and SupplyMe Capital
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and SupplyMe Capital 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 SupplyMe Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and SupplyMe Capital PLC, you can compare the effects of market volatilities on Capri Holdings and SupplyMe Capital 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 SupplyMe Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and SupplyMe Capital.
Diversification Opportunities for Capri Holdings and SupplyMe Capital
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Capri and SupplyMe is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and SupplyMe Capital PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SupplyMe Capital PLC 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 SupplyMe Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SupplyMe Capital PLC has no effect on the direction of Capri Holdings i.e., Capri Holdings and SupplyMe Capital go up and down completely randomly.
Pair Corralation between Capri Holdings and SupplyMe Capital
Given the investment horizon of 90 days Capri Holdings is expected to generate 2.18 times less return on investment than SupplyMe Capital. But when comparing it to its historical volatility, Capri Holdings is 3.37 times less risky than SupplyMe Capital. It trades about 0.26 of its potential returns per unit of risk. SupplyMe Capital PLC is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 0.30 in SupplyMe Capital PLC on September 1, 2024 and sell it today you would earn a total of 0.10 from holding SupplyMe Capital PLC or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Capri Holdings vs. SupplyMe Capital PLC
Performance |
| Timeline |
| Capri Holdings |
| SupplyMe Capital PLC |
Capri Holdings and SupplyMe Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and SupplyMe Capital
The main advantage of trading using opposite Capri Holdings and SupplyMe Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, SupplyMe Capital 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 SupplyMe Capital will offset losses from the drop in SupplyMe Capital's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| SupplyMe Capital vs. Associated British Foods | SupplyMe Capital vs. Ecofin Global Utilities | SupplyMe Capital vs. Austevoll Seafood ASA | SupplyMe Capital vs. Spirent Communications plc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |