Correlation Between Capri Holdings and 552953CD1
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By analyzing existing cross correlation between Capri Holdings and MGM Resorts International, you can compare the effects of market volatilities on Capri Holdings and 552953CD1 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 552953CD1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and 552953CD1.
Diversification Opportunities for Capri Holdings and 552953CD1
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Capri and 552953CD1 is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and MGM Resorts International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGM Resorts International 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 552953CD1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGM Resorts International has no effect on the direction of Capri Holdings i.e., Capri Holdings and 552953CD1 go up and down completely randomly.
Pair Corralation between Capri Holdings and 552953CD1
Given the investment horizon of 90 days Capri Holdings is expected to generate 4.15 times more return on investment than 552953CD1. However, Capri Holdings is 4.15 times more volatile than MGM Resorts International. It trades about 0.26 of its potential returns per unit of risk. MGM Resorts International is currently generating about -0.17 per unit of risk. If you would invest 1,974 in Capri Holdings on September 1, 2024 and sell it today you would earn a total of 367.00 from holding Capri Holdings or generate 18.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capri Holdings vs. MGM Resorts International
Performance |
| Timeline |
| Capri Holdings |
| MGM Resorts International |
Capri Holdings and 552953CD1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and 552953CD1
The main advantage of trading using opposite Capri Holdings and 552953CD1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, 552953CD1 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 552953CD1 will offset losses from the drop in 552953CD1's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| 552953CD1 vs. Corporacion America Airports | 552953CD1 vs. EvoAir Holdings | 552953CD1 vs. Hudson Pacific Properties | 552953CD1 vs. Merit Medical Systems |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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