Correlation Between Capri Holdings and Xbrane Biopharma
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Xbrane Biopharma 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 Xbrane Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Xbrane Biopharma AB, you can compare the effects of market volatilities on Capri Holdings and Xbrane Biopharma 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 Xbrane Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Xbrane Biopharma.
Diversification Opportunities for Capri Holdings and Xbrane Biopharma
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capri and Xbrane is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Xbrane Biopharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xbrane Biopharma 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 Xbrane Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xbrane Biopharma has no effect on the direction of Capri Holdings i.e., Capri Holdings and Xbrane Biopharma go up and down completely randomly.
Pair Corralation between Capri Holdings and Xbrane Biopharma
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Xbrane Biopharma. But the stock apears to be less risky and, when comparing its historical volatility, Capri Holdings is 4.89 times less risky than Xbrane Biopharma. The stock trades about -0.06 of its potential returns per unit of risk. The Xbrane Biopharma AB is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,595 in Xbrane Biopharma AB on September 1, 2024 and sell it today you would lose (2,576) from holding Xbrane Biopharma AB or give up 99.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.9% |
| Values | Daily Returns |
Capri Holdings vs. Xbrane Biopharma AB
Performance |
| Timeline |
| Capri Holdings |
| Xbrane Biopharma |
Capri Holdings and Xbrane Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Xbrane Biopharma
The main advantage of trading using opposite Capri Holdings and Xbrane Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Xbrane Biopharma 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 Xbrane Biopharma will offset losses from the drop in Xbrane Biopharma's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Xbrane Biopharma vs. Kancera AB | Xbrane Biopharma vs. Cyxone AB | Xbrane Biopharma vs. Lidds AB | Xbrane Biopharma vs. Cantargia AB |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |