Correlation Between PKSHA TECHNOLOGY and G III
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY and G III into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and G III Apparel Group, you can compare the effects of market volatilities on PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY with a short position of G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and G III.
Diversification Opportunities for PKSHA TECHNOLOGY and G III
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PKSHA and GI4 is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC 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 PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC 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 PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and G III go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and G III
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to under-perform the G III. In addition to that, PKSHA TECHNOLOGY is 1.83 times more volatile than G III Apparel Group. It trades about -0.07 of its total potential returns per unit of risk. G III Apparel Group is currently generating about -0.01 per unit of volatility. If you would invest 3,120 in G III Apparel Group on November 1, 2024 and sell it today you would lose (20.00) from holding G III Apparel Group or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. G III Apparel Group
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| G III Apparel |
PKSHA TECHNOLOGY and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and G III
The main advantage of trading using opposite PKSHA TECHNOLOGY and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY 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.| PKSHA TECHNOLOGY vs. Mitsui Chemicals | PKSHA TECHNOLOGY vs. Siamgas And Petrochemicals | PKSHA TECHNOLOGY vs. SALESFORCE INC CDR | PKSHA TECHNOLOGY vs. Gruppo Mutuionline SpA |
| G III vs. United Airlines Holdings | G III vs. JD SPORTS FASH | G III vs. Singapore Airlines Limited | G III vs. Nok Airlines PCL |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |