Correlation Between G III and Anfield Energy
Can any of the company-specific risk be diversified away by investing in both G III and Anfield Energy 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 Anfield Energy 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 Anfield Energy, you can compare the effects of market volatilities on G III and Anfield Energy 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 Anfield Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and Anfield Energy.
Diversification Opportunities for G III and Anfield Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GI4 and Anfield is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and Anfield Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Energy 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 Anfield Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Energy has no effect on the direction of G III i.e., G III and Anfield Energy go up and down completely randomly.
Pair Corralation between G III and Anfield Energy
If you would invest 2,880 in G III Apparel Group on September 12, 2024 and sell it today you would earn a total of 460.00 from holding G III Apparel Group or generate 15.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G III Apparel Group vs. Anfield Energy
Performance |
| Timeline |
| G III Apparel |
| Anfield Energy |
G III and Anfield Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and Anfield Energy
The main advantage of trading using opposite G III and Anfield Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, Anfield Energy 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 Anfield Energy will offset losses from the drop in Anfield Energy's long position.The idea behind G III Apparel Group and Anfield Energy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Anfield Energy vs. AM EAGLE OUTFITTERS | Anfield Energy vs. G III Apparel Group | Anfield Energy vs. Air Transport Services | Anfield Energy vs. Ming Le Sports |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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