Correlation Between Kate Spade and Tapestry
Can any of the company-specific risk be diversified away by investing in both Kate Spade and Tapestry 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 Kate Spade and Tapestry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kate Spade and Tapestry, you can compare the effects of market volatilities on Kate Spade and Tapestry 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 Kate Spade with a short position of Tapestry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kate Spade and Tapestry.
Diversification Opportunities for Kate Spade and Tapestry
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kate and Tapestry is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kate Spade and Tapestry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tapestry and Kate Spade 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 Kate Spade are associated (or correlated) with Tapestry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tapestry has no effect on the direction of Kate Spade i.e., Kate Spade and Tapestry go up and down completely randomly.
Pair Corralation between Kate Spade and Tapestry
If you would invest 2,943 in Tapestry on January 25, 2024 and sell it today you would earn a total of 1,041 from holding Tapestry or generate 35.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kate Spade vs. Tapestry
Performance |
| Timeline |
| Kate Spade |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tapestry |
Kate Spade and Tapestry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kate Spade and Tapestry
The main advantage of trading using opposite Kate Spade and Tapestry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kate Spade position performs unexpectedly, Tapestry 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 Tapestry will offset losses from the drop in Tapestry's long position.| Kate Spade vs. CAVA Group | Kate Spade vs. Stevanato Group SpA | Kate Spade vs. JBG SMITH Properties | Kate Spade vs. Chipotle Mexican Grill |
| Tapestry vs. Signet Jewelers | Tapestry vs. Movado Group | Tapestry vs. TheRealReal | Tapestry vs. Fossil Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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