Correlation Between Gap, and Ever Glory
Can any of the company-specific risk be diversified away by investing in both Gap, and Ever Glory 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 Gap, and Ever Glory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gap, and Ever Glory International Group, you can compare the effects of market volatilities on Gap, and Ever Glory 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 Gap, with a short position of Ever Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gap, and Ever Glory.
Diversification Opportunities for Gap, and Ever Glory
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gap, and Ever is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding The Gap, and Ever Glory International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ever Glory Internati and Gap, 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 The Gap, are associated (or correlated) with Ever Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ever Glory Internati has no effect on the direction of Gap, i.e., Gap, and Ever Glory go up and down completely randomly.
Pair Corralation between Gap, and Ever Glory
If you would invest 2,144 in The Gap, on August 30, 2024 and sell it today you would earn a total of 271.00 from holding The Gap, or generate 12.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
The Gap, vs. Ever Glory International Group
Performance |
| Timeline |
| Gap, |
| Ever Glory Internati |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gap, and Ever Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gap, and Ever Glory
The main advantage of trading using opposite Gap, and Ever Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gap, position performs unexpectedly, Ever Glory 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 Ever Glory will offset losses from the drop in Ever Glory's long position.The idea behind The Gap, and Ever Glory International Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ever Glory vs. Boot Barn Holdings | Ever Glory vs. Burlington Stores | Ever Glory vs. The Gap, | Ever Glory vs. Tandy Leather Factory |
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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