Correlation Between USWE SPORTS and G III
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS 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 USWE SPORTS and G III into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and G III APPAREL GROUP, you can compare the effects of market volatilities on USWE SPORTS 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 USWE SPORTS with a short position of G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and G III.
Diversification Opportunities for USWE SPORTS and G III
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between USWE and GI4 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB 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 USWE SPORTS 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 USWE SPORTS AB 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 USWE SPORTS i.e., USWE SPORTS and G III go up and down completely randomly.
Pair Corralation between USWE SPORTS and G III
Assuming the 90 days horizon USWE SPORTS AB is expected to generate 1.37 times more return on investment than G III. However, USWE SPORTS is 1.37 times more volatile than G III APPAREL GROUP. It trades about -0.08 of its potential returns per unit of risk. G III APPAREL GROUP is currently generating about -0.12 per unit of risk. If you would invest 85.00 in USWE SPORTS AB on November 22, 2024 and sell it today you would lose (5.00) from holding USWE SPORTS AB or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
USWE SPORTS AB vs. G III APPAREL GROUP
Performance |
| Timeline |
| USWE SPORTS AB |
| G III APPAREL |
USWE SPORTS and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and G III
The main advantage of trading using opposite USWE SPORTS and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS 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.| USWE SPORTS vs. Tradegate AG Wertpapierhandelsbank | USWE SPORTS vs. CARDINAL HEALTH | USWE SPORTS vs. Fast Retailing Co | USWE SPORTS vs. FLOW TRADERS LTD |
| G III vs. Fukuyama Transporting Co | G III vs. Gold Road Resources | G III vs. BII Railway Transportation | G III vs. NAGOYA RAILROAD |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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