Correlation Between ANTA SPORTS and G-III Apparel
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and G-III Apparel 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 ANTA SPORTS and G-III Apparel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANTA SPORTS PRODUCT and G III Apparel Group, you can compare the effects of market volatilities on ANTA SPORTS and G-III Apparel 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 ANTA SPORTS with a short position of G-III Apparel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and G-III Apparel.
Diversification Opportunities for ANTA SPORTS and G-III Apparel
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ANTA and G-III is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT 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 ANTA 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 ANTA SPORTS PRODUCT are associated (or correlated) with G-III Apparel. 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 ANTA SPORTS i.e., ANTA SPORTS and G-III Apparel go up and down completely randomly.
Pair Corralation between ANTA SPORTS and G-III Apparel
Assuming the 90 days trading horizon ANTA SPORTS is expected to generate 2.73 times less return on investment than G-III Apparel. But when comparing it to its historical volatility, ANTA SPORTS PRODUCT is 1.1 times less risky than G-III Apparel. It trades about 0.03 of its potential returns per unit of risk. G III Apparel Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,260 in G III Apparel Group on September 2, 2024 and sell it today you would earn a total of 1,540 from holding G III Apparel Group or generate 122.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. G III Apparel Group
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| G III Apparel |
ANTA SPORTS and G-III Apparel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and G-III Apparel
The main advantage of trading using opposite ANTA SPORTS and G-III Apparel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, G-III Apparel 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 Apparel will offset losses from the drop in G-III Apparel's long position.| ANTA SPORTS vs. SIVERS SEMICONDUCTORS AB | ANTA SPORTS vs. Darden Restaurants | ANTA SPORTS vs. Reliance Steel Aluminum | ANTA SPORTS vs. Q2M Managementberatung AG |
| G-III Apparel vs. ASURE SOFTWARE | G-III Apparel vs. Rogers Communications | G-III Apparel vs. AXWAY SOFTWARE EO | G-III Apparel vs. Chunghwa Telecom Co |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |