Correlation Between Capital Properties and Hugo Boss
Can any of the company-specific risk be diversified away by investing in both Capital Properties and Hugo Boss 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 Capital Properties and Hugo Boss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Properties and Hugo Boss AG, you can compare the effects of market volatilities on Capital Properties and Hugo Boss 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 Capital Properties with a short position of Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Properties and Hugo Boss.
Diversification Opportunities for Capital Properties and Hugo Boss
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Capital and Hugo is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Capital Properties and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG and Capital Properties 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 Capital Properties are associated (or correlated) with Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of Capital Properties i.e., Capital Properties and Hugo Boss go up and down completely randomly.
Pair Corralation between Capital Properties and Hugo Boss
If you would invest 1,200 in Capital Properties on January 17, 2024 and sell it today you would earn a total of 0.00 from holding Capital Properties or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Capital Properties vs. Hugo Boss AG
Performance |
| Timeline |
| Capital Properties |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hugo Boss AG |
Capital Properties and Hugo Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Properties and Hugo Boss
The main advantage of trading using opposite Capital Properties and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Properties position performs unexpectedly, Hugo Boss 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 Hugo Boss will offset losses from the drop in Hugo Boss' long position.| Capital Properties vs. Community Bancorp | Capital Properties vs. Meritage Hospitality Group | Capital Properties vs. F M Bank | Capital Properties vs. ENB Financial Corp |
| Hugo Boss vs. International Consolidated Airlines | Hugo Boss vs. Warner Music Group | Hugo Boss vs. Cleanaway Waste Management | Hugo Boss vs. Zoom Video Communications |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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