Correlation Between YETI Holdings and Capri Holdings
Can any of the company-specific risk be diversified away by investing in both YETI Holdings 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 YETI Holdings and Capri Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YETI Holdings and Capri Holdings, you can compare the effects of market volatilities on YETI Holdings 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 YETI Holdings with a short position of Capri Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of YETI Holdings and Capri Holdings.
Diversification Opportunities for YETI Holdings and Capri Holdings
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between YETI and Capri is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding YETI Holdings and Capri Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capri Holdings and YETI 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 YETI Holdings 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 YETI Holdings i.e., YETI Holdings and Capri Holdings go up and down completely randomly.
Pair Corralation between YETI Holdings and Capri Holdings
Given the investment horizon of 90 days YETI Holdings is expected to generate 0.72 times more return on investment than Capri Holdings. However, YETI Holdings is 1.39 times less risky than Capri Holdings. It trades about -0.02 of its potential returns per unit of risk. Capri Holdings is currently generating about -0.06 per unit of risk. If you would invest 4,584 in YETI Holdings on November 9, 2024 and sell it today you would lose (845.00) from holding YETI Holdings or give up 18.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YETI Holdings vs. Capri Holdings
Performance |
| Timeline |
| YETI Holdings |
| Capri Holdings |
YETI Holdings and Capri Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YETI Holdings and Capri Holdings
The main advantage of trading using opposite YETI Holdings and Capri Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YETI Holdings 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.| YETI Holdings vs. Acushnet Holdings Corp | YETI Holdings vs. Madison Square Garden | YETI Holdings vs. Callaway Golf | YETI Holdings vs. Johnson Outdoors |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |