Correlation Between Capri Holdings and WIG Dividend
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By analyzing existing cross correlation between Capri Holdings and WIG Dividend, you can compare the effects of market volatilities on Capri Holdings and WIG Dividend 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 WIG Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and WIG Dividend.
Diversification Opportunities for Capri Holdings and WIG Dividend
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Capri and WIG is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and WIG Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIG Dividend 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 WIG Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIG Dividend has no effect on the direction of Capri Holdings i.e., Capri Holdings and WIG Dividend go up and down completely randomly.
Pair Corralation between Capri Holdings and WIG Dividend
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the WIG Dividend. In addition to that, Capri Holdings is 5.49 times more volatile than WIG Dividend. It trades about -0.03 of its total potential returns per unit of risk. WIG Dividend is currently generating about -0.03 per unit of volatility. If you would invest 179,055 in WIG Dividend on September 1, 2024 and sell it today you would lose (7,309) from holding WIG Dividend or give up 4.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Capri Holdings vs. WIG Dividend
Performance |
| Timeline |
Capri Holdings and WIG Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Capri Holdings
Pair trading matchups for Capri Holdings
WIG Dividend
Pair trading matchups for WIG Dividend
Pair Trading with Capri Holdings and WIG Dividend
The main advantage of trading using opposite Capri Holdings and WIG Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, WIG Dividend 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 WIG Dividend will offset losses from the drop in WIG Dividend's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| WIG Dividend vs. Cloud Technologies SA | WIG Dividend vs. Medicofarma Biotech SA | WIG Dividend vs. Mercator Medical SA | WIG Dividend vs. Skyline Investment SA |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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