Correlation Between G-III APPAREL and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both G-III APPAREL and GRIFFIN MINING 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 APPAREL and GRIFFIN MINING 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 GRIFFIN MINING LTD, you can compare the effects of market volatilities on G-III APPAREL and GRIFFIN MINING 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 APPAREL with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of G-III APPAREL and GRIFFIN MINING.
Diversification Opportunities for G-III APPAREL and GRIFFIN MINING
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between G-III and GRIFFIN is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding G III APPAREL GROUP and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD and G-III APPAREL 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of G-III APPAREL i.e., G-III APPAREL and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between G-III APPAREL and GRIFFIN MINING
Assuming the 90 days trading horizon G III APPAREL GROUP is expected to generate 1.39 times more return on investment than GRIFFIN MINING. However, G-III APPAREL is 1.39 times more volatile than GRIFFIN MINING LTD. It trades about 0.07 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.08 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 | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G III APPAREL GROUP vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| G III APPAREL |
| GRIFFIN MINING LTD |
G-III APPAREL and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G-III APPAREL and GRIFFIN MINING
The main advantage of trading using opposite G-III APPAREL and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G-III APPAREL position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| G-III APPAREL vs. Air Lease | G-III APPAREL vs. BW OFFSHORE LTD | G-III APPAREL vs. Lendlease Group | G-III APPAREL vs. Air New Zealand |
| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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