Correlation Between Hugo Boss and G III
Can any of the company-specific risk be diversified away by investing in both Hugo Boss 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 Hugo Boss and G III into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hugo Boss AG and G III Apparel Group, you can compare the effects of market volatilities on Hugo Boss 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 Hugo Boss with a short position of G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hugo Boss and G III.
Diversification Opportunities for Hugo Boss and G III
Good diversification
The 3 months correlation between Hugo and GIII is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Hugo Boss AG 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 Hugo Boss 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 Hugo Boss AG 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 Hugo Boss i.e., Hugo Boss and G III go up and down completely randomly.
Pair Corralation between Hugo Boss and G III
Assuming the 90 days horizon Hugo Boss is expected to generate 6.31 times less return on investment than G III. In addition to that, Hugo Boss is 1.39 times more volatile than G III Apparel Group. It trades about 0.02 of its total potential returns per unit of risk. G III Apparel Group is currently generating about 0.19 per unit of volatility. If you would invest 3,086 in G III Apparel Group on September 14, 2024 and sell it today you would earn a total of 379.00 from holding G III Apparel Group or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hugo Boss AG vs. G III Apparel Group
Performance |
| Timeline |
| Hugo Boss AG |
| G III Apparel |
Hugo Boss and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hugo Boss and G III
The main advantage of trading using opposite Hugo Boss and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hugo Boss 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.| Hugo Boss vs. VF Corporation | Hugo Boss vs. Levi Strauss Co | Hugo Boss vs. Under Armour C | Hugo Boss vs. Under Armour A |
| G III vs. Oxford Industries | G III vs. Ermenegildo Zegna NV | G III vs. Kontoor Brands | G III vs. Columbia Sportswear |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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