Correlation Between TheRealReal and Capri Holdings
Can any of the company-specific risk be diversified away by investing in both TheRealReal 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 TheRealReal and Capri Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TheRealReal and Capri Holdings, you can compare the effects of market volatilities on TheRealReal 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 TheRealReal with a short position of Capri Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of TheRealReal and Capri Holdings.
Diversification Opportunities for TheRealReal and Capri Holdings
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TheRealReal and Capri is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding TheRealReal and Capri Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capri Holdings and TheRealReal 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 TheRealReal 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 TheRealReal i.e., TheRealReal and Capri Holdings go up and down completely randomly.
Pair Corralation between TheRealReal and Capri Holdings
Given the investment horizon of 90 days TheRealReal is expected to generate 1.98 times more return on investment than Capri Holdings. However, TheRealReal is 1.98 times more volatile than Capri Holdings. It trades about 0.24 of its potential returns per unit of risk. Capri Holdings is currently generating about 0.3 per unit of risk. If you would invest 479.00 in TheRealReal on April 29, 2025 and sell it today you would earn a total of 86.00 from holding TheRealReal or generate 17.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TheRealReal vs. Capri Holdings
Performance |
| Timeline |
| TheRealReal |
| Capri Holdings |
TheRealReal and Capri Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TheRealReal and Capri Holdings
The main advantage of trading using opposite TheRealReal and Capri Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TheRealReal 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.| TheRealReal vs. Signet Jewelers | TheRealReal vs. Tapestry | TheRealReal vs. Capri Holdings | TheRealReal vs. Fossil Group |
| Capri Holdings vs. Tapestry | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Movado Group | Capri Holdings vs. Lanvin Group Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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