Correlation Between CITY OFFICE and G III
Can any of the company-specific risk be diversified away by investing in both CITY OFFICE and G III 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 CITY OFFICE and G III into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITY OFFICE REIT and G III Apparel Group, you can compare the effects of market volatilities on CITY OFFICE and G III 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 CITY OFFICE with a short position of G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITY OFFICE and G III.
Diversification Opportunities for CITY OFFICE and G III
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between CITY and GI4 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding CITY OFFICE REIT and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel and CITY OFFICE 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 CITY OFFICE REIT are associated (or correlated) with G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of CITY OFFICE i.e., CITY OFFICE and G III go up and down completely randomly.
Pair Corralation between CITY OFFICE and G III
Assuming the 90 days horizon CITY OFFICE is expected to generate 2.43 times less return on investment than G III. But when comparing it to its historical volatility, CITY OFFICE REIT is 1.35 times less risky than G III. It trades about 0.05 of its potential returns per unit of risk. G III Apparel Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,380 in G III Apparel Group on September 3, 2024 and sell it today you would earn a total of 420.00 from holding G III Apparel Group or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITY OFFICE REIT vs. G III Apparel Group
Performance |
| Timeline |
| CITY OFFICE REIT |
| G III Apparel |
CITY OFFICE and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITY OFFICE and G III
The main advantage of trading using opposite CITY OFFICE and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITY OFFICE position performs unexpectedly, G III 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 G III will offset losses from the drop in G III's long position.| CITY OFFICE vs. Boston Properties | CITY OFFICE vs. COUSINS PTIES INC | CITY OFFICE vs. Office Properties Income | CITY OFFICE vs. CREMECOMTRSBI DL 001 |
| G III vs. Westlake Chemical | G III vs. SK TELECOM TDADR | G III vs. Gamma Communications plc | G III vs. KINGBOARD CHEMICAL |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |