Correlation Between G-III Apparel and AIR LIQUIDE
Can any of the company-specific risk be diversified away by investing in both G-III Apparel and AIR LIQUIDE 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 AIR LIQUIDE 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 AIR LIQUIDE ADR, you can compare the effects of market volatilities on G-III Apparel and AIR LIQUIDE 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 AIR LIQUIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of G-III Apparel and AIR LIQUIDE.
Diversification Opportunities for G-III Apparel and AIR LIQUIDE
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between G-III and AIR is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and AIR LIQUIDE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIR LIQUIDE ADR 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 AIR LIQUIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIR LIQUIDE ADR has no effect on the direction of G-III Apparel i.e., G-III Apparel and AIR LIQUIDE go up and down completely randomly.
Pair Corralation between G-III Apparel and AIR LIQUIDE
Assuming the 90 days horizon G III Apparel Group is expected to generate 2.22 times more return on investment than AIR LIQUIDE. However, G-III Apparel is 2.22 times more volatile than AIR LIQUIDE ADR. It trades about 0.07 of its potential returns per unit of risk. AIR LIQUIDE ADR is currently generating about -0.22 per unit of risk. If you would invest 2,640 in G III Apparel Group on September 3, 2024 and sell it today you would earn a total of 160.00 from holding G III Apparel Group or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G III Apparel Group vs. AIR LIQUIDE ADR
Performance |
| Timeline |
| G III Apparel |
| AIR LIQUIDE ADR |
G-III Apparel and AIR LIQUIDE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G-III Apparel and AIR LIQUIDE
The main advantage of trading using opposite G-III Apparel and AIR LIQUIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G-III Apparel position performs unexpectedly, AIR LIQUIDE 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 AIR LIQUIDE will offset losses from the drop in AIR LIQUIDE's long position.| G-III Apparel vs. Sanyo Chemical Industries | G-III Apparel vs. MCEWEN MINING INC | G-III Apparel vs. AIR PRODCHEMICALS | G-III Apparel vs. FIREWEED METALS P |
| AIR LIQUIDE vs. AM EAGLE OUTFITTERS | AIR LIQUIDE vs. American Eagle Outfitters | AIR LIQUIDE vs. Ebro Foods SA | AIR LIQUIDE vs. G III Apparel Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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