Correlation Between Capri Holdings and Macquariefirst

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

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

Diversification Opportunities for Capri Holdings and Macquariefirst

0.0

Correlation Coefficient

Capri Holdings  Macquariefirst

Pay attention - limited upside

The 3 months correlation between Capri and Macquariefirst is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Macquariefirst Tr Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquariefirst Tr Global 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 Macquariefirst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquariefirst Tr Global has no effect on the direction of Capri Holdings i.e., Capri Holdings and Macquariefirst go up and down completely randomly.

Pair Corralation between Capri Holdings and Macquariefirst

If you would invest (100.00) in Macquariefirst Tr Global on November 28, 2024 and sell it today you would earn a total of  100.00  from holding Macquariefirst Tr Global or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Capri Holdings  vs.  Macquariefirst Tr Global

Capri Holdings

Risk-Adjusted Performance

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 March 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Macquariefirst Tr Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Macquariefirst Tr Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound technical and fundamental indicators, Macquariefirst is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Capri Holdings and Macquariefirst

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

The idea behind Capri Holdings and Macquariefirst Tr Global 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.