Correlation Between G III and WAGNERS HOLDING
Can any of the company-specific risk be diversified away by investing in both G III and WAGNERS HOLDING 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 WAGNERS HOLDING 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 WAGNERS HOLDING LTD, you can compare the effects of market volatilities on G III and WAGNERS HOLDING 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 WAGNERS HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and WAGNERS HOLDING.
Diversification Opportunities for G III and WAGNERS HOLDING
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GI4 and WAGNERS is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and WAGNERS HOLDING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WAGNERS HOLDING LTD 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 WAGNERS HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WAGNERS HOLDING LTD has no effect on the direction of G III i.e., G III and WAGNERS HOLDING go up and down completely randomly.
Pair Corralation between G III and WAGNERS HOLDING
Assuming the 90 days trading horizon G III is expected to generate 8.99 times less return on investment than WAGNERS HOLDING. But when comparing it to its historical volatility, G III Apparel Group is 1.62 times less risky than WAGNERS HOLDING. It trades about 0.05 of its potential returns per unit of risk. WAGNERS HOLDING LTD is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 82.00 in WAGNERS HOLDING LTD on November 6, 2024 and sell it today you would earn a total of 12.00 from holding WAGNERS HOLDING LTD or generate 14.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
G III Apparel Group vs. WAGNERS HOLDING LTD
Performance |
| Timeline |
| G III Apparel |
| WAGNERS HOLDING LTD |
G III and WAGNERS HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and WAGNERS HOLDING
The main advantage of trading using opposite G III and WAGNERS HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, WAGNERS HOLDING 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 WAGNERS HOLDING will offset losses from the drop in WAGNERS HOLDING's long position.| G III vs. Perseus Mining Limited | G III vs. DISTRICT METALS | G III vs. REVO INSURANCE SPA | G III vs. Harmony Gold Mining |
| WAGNERS HOLDING vs. MHP Hotel AG | WAGNERS HOLDING vs. United Rentals | WAGNERS HOLDING vs. FIRST SHIP LEASE | WAGNERS HOLDING vs. Sixt Leasing SE |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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