Correlation Between Capri Holdings and FEDEX
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By analyzing existing cross correlation between Capri Holdings and FEDEX P 44, you can compare the effects of market volatilities on Capri Holdings and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and FEDEX.
Diversification Opportunities for Capri Holdings and FEDEX
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Capri and FEDEX is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and FEDEX P 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 44 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P 44 has no effect on the direction of Capri Holdings i.e., Capri Holdings and FEDEX go up and down completely randomly.
Pair Corralation between Capri Holdings and FEDEX
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the FEDEX. In addition to that, Capri Holdings is 1.75 times more volatile than FEDEX P 44. It trades about -0.03 of its total potential returns per unit of risk. FEDEX P 44 is currently generating about 0.02 per unit of volatility. If you would invest 8,150 in FEDEX P 44 on September 1, 2024 and sell it today you would earn a total of 81.00 from holding FEDEX P 44 or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Capri Holdings vs. FEDEX P 44
Performance |
| Timeline |
| Capri Holdings |
| FEDEX P 44 |
Capri Holdings and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and FEDEX
The main advantage of trading using opposite Capri Holdings and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| FEDEX vs. Molson Coors Brewing | FEDEX vs. Ambev SA ADR | FEDEX vs. Elmos Semiconductor SE | FEDEX vs. Analog Devices |
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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