Correlation Between G-III Apparel and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both G-III Apparel and Coeur Mining 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 Coeur Mining 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 Coeur Mining, you can compare the effects of market volatilities on G-III Apparel and Coeur Mining 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 Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of G-III Apparel and Coeur Mining.
Diversification Opportunities for G-III Apparel and Coeur Mining
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between G-III and Coeur is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining 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 Coeur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur Mining has no effect on the direction of G-III Apparel i.e., G-III Apparel and Coeur Mining go up and down completely randomly.
Pair Corralation between G-III Apparel and Coeur Mining
Assuming the 90 days trading horizon G III Apparel Group is expected to generate 2.25 times more return on investment than Coeur Mining. However, G-III Apparel is 2.25 times more volatile than Coeur Mining. It trades about 0.07 of its potential returns per unit of risk. Coeur Mining is currently generating about -0.05 per unit of risk. If you would invest 1,260 in G III Apparel Group on September 2, 2024 and sell it today you would earn a total of 1,540 from holding G III Apparel Group or generate 122.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G III Apparel Group vs. Coeur Mining
Performance |
| Timeline |
| G III Apparel |
| Coeur Mining |
G-III Apparel and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G-III Apparel and Coeur Mining
The main advantage of trading using opposite G-III Apparel and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G-III Apparel position performs unexpectedly, Coeur Mining 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 Coeur Mining will offset losses from the drop in Coeur Mining's long position.| G-III Apparel vs. ASURE SOFTWARE | G-III Apparel vs. Rogers Communications | G-III Apparel vs. AXWAY SOFTWARE EO | G-III Apparel vs. Chunghwa Telecom Co |
| Coeur Mining vs. Longfor Group Holdings | Coeur Mining vs. Mitsui Fudosan Co | Coeur Mining vs. Mitsubishi Estate Co | Coeur Mining vs. Sino Land |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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