Correlation Between G III and PACIFIC ONLINE
Can any of the company-specific risk be diversified away by investing in both G III and PACIFIC ONLINE 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 G III and PACIFIC ONLINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G III APPAREL GROUP and PACIFIC ONLINE, you can compare the effects of market volatilities on G III and PACIFIC ONLINE 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 G III with a short position of PACIFIC ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and PACIFIC ONLINE.
Diversification Opportunities for G III and PACIFIC ONLINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GI4 and PACIFIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding G III APPAREL GROUP and PACIFIC ONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC ONLINE and G III 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 G III APPAREL GROUP are associated (or correlated) with PACIFIC ONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC ONLINE has no effect on the direction of G III i.e., G III and PACIFIC ONLINE go up and down completely randomly.
Pair Corralation between G III and PACIFIC ONLINE
Assuming the 90 days trading horizon G III APPAREL GROUP is expected to generate 1.42 times more return on investment than PACIFIC ONLINE. However, G III is 1.42 times more volatile than PACIFIC ONLINE. It trades about 0.07 of its potential returns per unit of risk. PACIFIC ONLINE is currently generating about 0.04 per unit of risk. If you would invest 1,310 in G III APPAREL GROUP on August 29, 2024 and sell it today you would earn a total of 1,630 from holding G III APPAREL GROUP or generate 124.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
G III APPAREL GROUP vs. PACIFIC ONLINE
Performance |
| Timeline |
| G III APPAREL |
| PACIFIC ONLINE |
G III and PACIFIC ONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and PACIFIC ONLINE
The main advantage of trading using opposite G III and PACIFIC ONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, PACIFIC ONLINE 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 PACIFIC ONLINE will offset losses from the drop in PACIFIC ONLINE's long position.| G III vs. USWE SPORTS AB | G III vs. Texas Roadhouse | G III vs. Air Transport Services | G III vs. Gaztransport Technigaz SA |
| PACIFIC ONLINE vs. COLUMBIA SPORTSWEAR | PACIFIC ONLINE vs. KOOL2PLAY SA ZY | PACIFIC ONLINE vs. TRAVEL LEISURE DL 01 | PACIFIC ONLINE vs. LG Display 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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