Correlation Between G III and Strix Group
Can any of the company-specific risk be diversified away by investing in both G III and Strix Group 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 Strix Group 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 Strix Group Plc, you can compare the effects of market volatilities on G III and Strix Group 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 Strix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and Strix Group.
Diversification Opportunities for G III and Strix Group
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GI4 and Strix is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and Strix Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strix Group Plc 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 Strix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strix Group Plc has no effect on the direction of G III i.e., G III and Strix Group go up and down completely randomly.
Pair Corralation between G III and Strix Group
Assuming the 90 days horizon G III Apparel Group is expected to generate 0.75 times more return on investment than Strix Group. However, G III Apparel Group is 1.33 times less risky than Strix Group. It trades about 0.06 of its potential returns per unit of risk. Strix Group Plc is currently generating about -0.28 per unit of risk. If you would invest 2,780 in G III Apparel Group on September 12, 2024 and sell it today you would earn a total of 180.00 from holding G III Apparel Group or generate 6.47% 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. Strix Group Plc
Performance |
| Timeline |
| G III Apparel |
| Strix Group Plc |
G III and Strix Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and Strix Group
The main advantage of trading using opposite G III and Strix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, Strix Group 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 Strix Group will offset losses from the drop in Strix Group's long position.| G III vs. JSC Halyk bank | G III vs. Chunghwa Telecom Co | G III vs. CHIBA BANK | G III vs. BANKINTER ADR 2007 |
| Strix Group vs. ITALIAN WINE BRANDS | Strix Group vs. SANOK RUBBER ZY | Strix Group vs. The Yokohama Rubber | Strix Group vs. BRIT AMER TOBACCO |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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