Correlation Between Dogness International and Capri Holdings
Can any of the company-specific risk be diversified away by investing in both Dogness International and Capri Holdings 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 Dogness International and Capri Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dogness International Corp and Capri Holdings, you can compare the effects of market volatilities on Dogness International and Capri Holdings 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 Dogness International with a short position of Capri Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogness International and Capri Holdings.
Diversification Opportunities for Dogness International and Capri Holdings
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dogness and Capri is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Dogness International Corp and Capri Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capri Holdings and Dogness International 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 Dogness International Corp are associated (or correlated) with Capri Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capri Holdings has no effect on the direction of Dogness International i.e., Dogness International and Capri Holdings go up and down completely randomly.
Pair Corralation between Dogness International and Capri Holdings
Given the investment horizon of 90 days Dogness International Corp is expected to generate 2.2 times more return on investment than Capri Holdings. However, Dogness International is 2.2 times more volatile than Capri Holdings. It trades about 0.06 of its potential returns per unit of risk. Capri Holdings is currently generating about -0.03 per unit of risk. If you would invest 1,809 in Dogness International Corp on August 27, 2024 and sell it today you would earn a total of 2,988 from holding Dogness International Corp or generate 165.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dogness International Corp vs. Capri Holdings
Performance |
| Timeline |
| Dogness International |
| Capri Holdings |
Dogness International and Capri Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dogness International and Capri Holdings
The main advantage of trading using opposite Dogness International and Capri Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dogness International position performs unexpectedly, Capri Holdings 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 Capri Holdings will offset losses from the drop in Capri Holdings' long position.| Dogness International vs. VF Corporation | Dogness International vs. Levi Strauss Co | Dogness International vs. Under Armour A | Dogness International vs. Oxford Industries |
| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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