Correlation Between Capri Holdings and Kandal M

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

By analyzing existing cross correlation between Capri Holdings and Kandal M Venture, you can compare the effects of market volatilities on Capri Holdings and Kandal M 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 Kandal M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Kandal M.

Diversification Opportunities for Capri Holdings and Kandal M

-0.12

Correlation Coefficient

Capri Holdings  Kandal M

Good diversification

The 3 months correlation between Capri and Kandal is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Kandal M Venture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandal M Venture 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 Kandal M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kandal M Venture has no effect on the direction of Capri Holdings i.e., Capri Holdings and Kandal M go up and down completely randomly.

Pair Corralation between Capri Holdings and Kandal M

Given the investment horizon of 90 days Capri Holdings is expected to generate 10.23 times less return on investment than Kandal M. But when comparing it to its historical volatility, Capri Holdings is 2.43 times less risky than Kandal M. It trades about 0.07 of its potential returns per unit of risk. Kandal M Venture is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  440.00  in Kandal M Venture on May 5, 2025 and sell it today you would earn a total of  282.00  from holding Kandal M Venture or generate 64.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	44.44%
Values	Daily Returns

Capri Holdings  vs.  Kandal M Venture

Capri Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Capri Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Capri Holdings may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Kandal M Venture

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kandal M Venture are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Kandal M exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Capri Holdings and Kandal M

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

The idea behind Capri Holdings and Kandal M Venture 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 Stocks Directory module to find actively traded stocks across global markets.