Correlation Between Capri Holdings and Revolve Group
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Revolve Group 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 Revolve Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Revolve Group LLC, you can compare the effects of market volatilities on Capri Holdings and Revolve Group 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 Revolve Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Revolve Group.
Diversification Opportunities for Capri Holdings and Revolve Group
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Capri and Revolve is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Revolve Group LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revolve Group LLC 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 Revolve Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revolve Group LLC has no effect on the direction of Capri Holdings i.e., Capri Holdings and Revolve Group go up and down completely randomly.
Pair Corralation between Capri Holdings and Revolve Group
Given the investment horizon of 90 days Capri Holdings is expected to generate 1.3 times more return on investment than Revolve Group. However, Capri Holdings is 1.3 times more volatile than Revolve Group LLC. It trades about 0.1 of its potential returns per unit of risk. Revolve Group LLC is currently generating about 0.07 per unit of risk. If you would invest 1,759 in Capri Holdings on June 10, 2025 and sell it today you would earn a total of 369.00 from holding Capri Holdings or generate 20.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capri Holdings vs. Revolve Group LLC
Performance |
| Timeline |
| Capri Holdings |
| Revolve Group LLC |
Capri Holdings and Revolve Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Revolve Group
The main advantage of trading using opposite Capri Holdings and Revolve Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Revolve Group 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 Revolve Group will offset losses from the drop in Revolve Group's long position.| Capri Holdings vs. Tapestry | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Movado Group | Capri Holdings vs. Lanvin Group Holdings |
| Revolve Group vs. Global E Online | Revolve Group vs. Beyond, | Revolve Group vs. Etsy Inc | Revolve Group vs. Chewy Inc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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