Correlation Between Capri Holdings and Fisher Investments

Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Fisher Investments 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 Fisher Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Capri Holdings and Fisher Esg Fixed, you can compare the effects of market volatilities on Capri Holdings and Fisher Investments 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 Fisher Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Fisher Investments.

Diversification Opportunities for Capri Holdings and Fisher Investments

0.73

Correlation Coefficient

Capri Holdings  Fisher Investments

Poor diversification

The 3 months correlation between Capri and Fisher is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Fisher Esg Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Investments 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 Fisher Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Investments has no effect on the direction of Capri Holdings i.e., Capri Holdings and Fisher Investments go up and down completely randomly.

Pair Corralation between Capri Holdings and Fisher Investments

Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Fisher Investments. In addition to that, Capri Holdings is 20.81 times more volatile than Fisher Esg Fixed. It trades about -0.05 of its total potential returns per unit of risk. Fisher Esg Fixed is currently generating about -0.05 per unit of volatility. If you would invest  902.00  in Fisher Esg Fixed on August 30, 2024 and sell it today you would lose (9.00) from holding Fisher Esg Fixed or give up 1.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Capri Holdings  vs.  Fisher Esg Fixed

Capri Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Capri Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Fisher Investments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fisher Esg Fixed has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Fisher Investments is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Capri Holdings and Fisher Investments

The main advantage of trading using opposite Capri Holdings and Fisher Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Fisher Investments 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 Fisher Investments will offset losses from the drop in Fisher Investments' long position.

The idea behind Capri Holdings and Fisher Esg Fixed pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.