Correlation Between Interactive Strength and Capri Holdings

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

By analyzing existing cross correlation between Interactive Strength Common and Capri Holdings, you can compare the effects of market volatilities on Interactive Strength 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 Interactive Strength with a short position of Capri Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interactive Strength and Capri Holdings.

Diversification Opportunities for Interactive Strength and Capri Holdings

-0.36

Correlation Coefficient

Interactive Strength  Capri Holdings

Very good diversification

The 3 months correlation between Interactive and Capri is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Strength Common and Capri Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capri Holdings and Interactive Strength 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 Interactive Strength Common 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 Interactive Strength i.e., Interactive Strength and Capri Holdings go up and down completely randomly.

Pair Corralation between Interactive Strength and Capri Holdings

Given the investment horizon of 90 days Interactive Strength Common is expected to under-perform the Capri Holdings. In addition to that, Interactive Strength is 2.33 times more volatile than Capri Holdings. It trades about -0.1 of its total potential returns per unit of risk. Capri Holdings is currently generating about 0.09 per unit of volatility. If you would invest  1,857  in Capri Holdings on May 16, 2025 and sell it today you would earn a total of  346.00  from holding Capri Holdings or generate 18.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Interactive Strength Common  vs.  Capri Holdings

Interactive Strength

Risk-Adjusted Performance

Weakest

Over the last 90 days Interactive Strength Common has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Capri Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Capri Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Capri Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Interactive Strength and Capri Holdings

The main advantage of trading using opposite Interactive Strength and Capri Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interactive Strength 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.

The idea behind Interactive Strength Common and Capri Holdings 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.