Correlation Between G-III Apparel and Air Lease
Can any of the company-specific risk be diversified away by investing in both G-III Apparel and Air Lease 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 Lease 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 Lease, you can compare the effects of market volatilities on G-III Apparel and Air Lease 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 Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of G-III Apparel and Air Lease.
Diversification Opportunities for G-III Apparel and Air Lease
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between G-III and Air is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease 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 Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Lease has no effect on the direction of G-III Apparel i.e., G-III Apparel and Air Lease go up and down completely randomly.
Pair Corralation between G-III Apparel and Air Lease
Assuming the 90 days horizon G III Apparel Group is expected to under-perform the Air Lease. In addition to that, G-III Apparel is 1.06 times more volatile than Air Lease. It trades about -0.19 of its total potential returns per unit of risk. Air Lease is currently generating about -0.1 per unit of volatility. If you would invest 4,640 in Air Lease on October 22, 2024 and sell it today you would lose (120.00) from holding Air Lease or give up 2.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
G III Apparel Group vs. Air Lease
Performance |
| Timeline |
| G III Apparel |
| Air Lease |
G-III Apparel and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G-III Apparel and Air Lease
The main advantage of trading using opposite G-III Apparel and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G-III Apparel position performs unexpectedly, Air Lease 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 Lease will offset losses from the drop in Air Lease's long position.| G-III Apparel vs. PennantPark Investment | G-III Apparel vs. Siamgas And Petrochemicals | G-III Apparel vs. Chuangs China Investments | G-III Apparel vs. CARSALESCOM |
| Air Lease vs. NTT DATA | Air Lease vs. Data Modul AG | Air Lease vs. Neinor Homes SA | Air Lease vs. Hisense Home Appliances |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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