Correlation Between Capri Holdings and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and ProShares Ultra 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 ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and ProShares Ultra FTSE, you can compare the effects of market volatilities on Capri Holdings and ProShares Ultra 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 ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and ProShares Ultra.
Diversification Opportunities for Capri Holdings and ProShares Ultra
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Capri and ProShares is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and ProShares Ultra FTSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra FTSE 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 ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra FTSE has no effect on the direction of Capri Holdings i.e., Capri Holdings and ProShares Ultra go up and down completely randomly.
Pair Corralation between Capri Holdings and ProShares Ultra
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the ProShares Ultra. In addition to that, Capri Holdings is 2.77 times more volatile than ProShares Ultra FTSE. It trades about -0.03 of its total potential returns per unit of risk. ProShares Ultra FTSE is currently generating about -0.05 per unit of volatility. If you would invest 6,637 in ProShares Ultra FTSE on September 1, 2024 and sell it today you would lose (774.00) from holding ProShares Ultra FTSE or give up 11.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Capri Holdings vs. ProShares Ultra FTSE
Performance |
| Timeline |
| Capri Holdings |
| ProShares Ultra FTSE |
Capri Holdings and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and ProShares Ultra
The main advantage of trading using opposite Capri Holdings and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, ProShares Ultra 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 ProShares Ultra will offset losses from the drop in ProShares Ultra's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| ProShares Ultra vs. ProShares Ultra MSCI | ProShares Ultra vs. ProShares Ultra MSCI | ProShares Ultra vs. ProShares Ultra MSCI | ProShares Ultra vs. ProShares Ultra MSCI |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |