Correlation Between Capri Holdings and H+M HEN+MAUUNSPADR

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

By analyzing existing cross correlation between Capri Holdings Limited and HM HENMAUUNSPADR 15, you can compare the effects of market volatilities on Capri Holdings and H+M HEN+MAUUNSPADR 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 H+M HEN+MAUUNSPADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and H+M HEN+MAUUNSPADR.

Diversification Opportunities for Capri Holdings and H+M HEN+MAUUNSPADR

0.18

Correlation Coefficient

Capri Holdings  H+M HEN+MAUUNSPADR

Average diversification

The 3 months correlation between Capri and H+M is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings Limited and HM HENMAUUNSPADR 15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H+M HEN+MAUUNSPADR 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 Limited are associated (or correlated) with H+M HEN+MAUUNSPADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H+M HEN+MAUUNSPADR has no effect on the direction of Capri Holdings i.e., Capri Holdings and H+M HEN+MAUUNSPADR go up and down completely randomly.

Pair Corralation between Capri Holdings and H+M HEN+MAUUNSPADR

Assuming the 90 days horizon Capri Holdings Limited is expected to generate 1.33 times more return on investment than H+M HEN+MAUUNSPADR. However, Capri Holdings is 1.33 times more volatile than HM HENMAUUNSPADR 15. It trades about 0.17 of its potential returns per unit of risk. HM HENMAUUNSPADR 15 is currently generating about -0.01 per unit of risk. If you would invest  1,267  in Capri Holdings Limited on April 24, 2025 and sell it today you would earn a total of  379.00  from holding Capri Holdings Limited or generate 29.91% return on investment over 90 days.

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

Capri Holdings Limited  vs.  HM HENMAUUNSPADR 15

Capri Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Capri Holdings Limited are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Capri Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

H+M HEN+MAUUNSPADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days HM HENMAUUNSPADR 15 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, H+M HEN+MAUUNSPADR is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Capri Holdings and H+M HEN+MAUUNSPADR

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

The idea behind Capri Holdings Limited and HM HENMAUUNSPADR 15 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.