Correlation Between G III and Advanced Micro
Can any of the company-specific risk be diversified away by investing in both G III and Advanced Micro 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 Advanced Micro 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 Advanced Micro Devices, you can compare the effects of market volatilities on G III and Advanced Micro 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 Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and Advanced Micro.
Diversification Opportunities for G III and Advanced Micro
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GI4 and Advanced is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and Advanced Micro Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Devices 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 Advanced Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Micro Devices has no effect on the direction of G III i.e., G III and Advanced Micro go up and down completely randomly.
Pair Corralation between G III and Advanced Micro
Assuming the 90 days trading horizon G III Apparel Group is expected to generate 0.81 times more return on investment than Advanced Micro. However, G III Apparel Group is 1.23 times less risky than Advanced Micro. It trades about -0.16 of its potential returns per unit of risk. Advanced Micro Devices is currently generating about -0.21 per unit of risk. If you would invest 3,120 in G III Apparel Group on November 8, 2024 and sell it today you would lose (280.00) from holding G III Apparel Group or give up 8.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G III Apparel Group vs. Advanced Micro Devices
Performance |
| Timeline |
| G III Apparel |
| Advanced Micro Devices |
G III and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and Advanced Micro
The main advantage of trading using opposite G III and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, Advanced Micro 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 Advanced Micro will offset losses from the drop in Advanced Micro's long position.| G III vs. MARKET VECTR RETAIL | G III vs. TRADELINK ELECTRON | G III vs. CANON MARKETING JP | G III vs. Meta Financial Group |
| Advanced Micro vs. T Mobile | Advanced Micro vs. Coeur Mining | Advanced Micro vs. MAGNUM MINING EXP | Advanced Micro vs. GALENA MINING LTD |
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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