Correlation Between Capri Holdings and Van Phat
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Van Phat 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 Van Phat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Van Phat Hung, you can compare the effects of market volatilities on Capri Holdings and Van Phat 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 Van Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Van Phat.
Diversification Opportunities for Capri Holdings and Van Phat
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capri and Van is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Van Phat Hung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Van Phat Hung 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 Van Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Van Phat Hung has no effect on the direction of Capri Holdings i.e., Capri Holdings and Van Phat go up and down completely randomly.
Pair Corralation between Capri Holdings and Van Phat
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Van Phat. In addition to that, Capri Holdings is 1.51 times more volatile than Van Phat Hung. It trades about -0.23 of its total potential returns per unit of risk. Van Phat Hung is currently generating about 0.09 per unit of volatility. If you would invest 659,000 in Van Phat Hung on November 28, 2024 and sell it today you would earn a total of 21,000 from holding Van Phat Hung or generate 3.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
Capri Holdings vs. Van Phat Hung
Performance |
| Timeline |
| Capri Holdings |
| Van Phat Hung |
Capri Holdings and Van Phat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Van Phat
The main advantage of trading using opposite Capri Holdings and Van Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Van Phat 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 Van Phat will offset losses from the drop in Van Phat's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Van Phat vs. Innovative Technology Development | Van Phat vs. Post and Telecommunications | Van Phat vs. Song Hong Aluminum | Van Phat vs. Tienlen Steel Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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