Correlation Between Capri Holdings and VIMAB Group
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and VIMAB Group 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 VIMAB Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and VIMAB Group AB, you can compare the effects of market volatilities on Capri Holdings and VIMAB Group 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 VIMAB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and VIMAB Group.
Diversification Opportunities for Capri Holdings and VIMAB Group
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Capri and VIMAB is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and VIMAB Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIMAB Group AB 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 VIMAB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIMAB Group AB has no effect on the direction of Capri Holdings i.e., Capri Holdings and VIMAB Group go up and down completely randomly.
Pair Corralation between Capri Holdings and VIMAB Group
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the VIMAB Group. In addition to that, Capri Holdings is 1.95 times more volatile than VIMAB Group AB. It trades about -0.14 of its total potential returns per unit of risk. VIMAB Group AB is currently generating about 0.04 per unit of volatility. If you would invest 805.00 in VIMAB Group AB on January 13, 2025 and sell it today you would earn a total of 15.00 from holding VIMAB Group AB or generate 1.86% 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. VIMAB Group AB
Performance |
| Timeline |
| Capri Holdings |
| VIMAB Group AB |
Capri Holdings and VIMAB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and VIMAB Group
The main advantage of trading using opposite Capri Holdings and VIMAB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, VIMAB Group 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 VIMAB Group will offset losses from the drop in VIMAB Group's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| VIMAB Group vs. FormPipe Software AB | VIMAB Group vs. Nordic Asia Investment | VIMAB Group vs. Viaplay Group AB | VIMAB Group vs. I Tech |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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