Correlation Between G-III Apparel and LANSON-BCC INH
Can any of the company-specific risk be diversified away by investing in both G-III Apparel and LANSON-BCC INH 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 LANSON-BCC INH 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 LANSON BCC INH EO, you can compare the effects of market volatilities on G-III Apparel and LANSON-BCC INH 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 LANSON-BCC INH. Check out your portfolio center. Please also check ongoing floating volatility patterns of G-III Apparel and LANSON-BCC INH.
Diversification Opportunities for G-III Apparel and LANSON-BCC INH
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between G-III and LANSON-BCC is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and LANSON BCC INH EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LANSON BCC INH 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 LANSON-BCC INH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LANSON BCC INH has no effect on the direction of G-III Apparel i.e., G-III Apparel and LANSON-BCC INH go up and down completely randomly.
Pair Corralation between G-III Apparel and LANSON-BCC INH
Assuming the 90 days trading horizon G III Apparel Group is expected to under-perform the LANSON-BCC INH. In addition to that, G-III Apparel is 1.54 times more volatile than LANSON BCC INH EO. It trades about -0.19 of its total potential returns per unit of risk. LANSON BCC INH EO is currently generating about -0.21 per unit of volatility. If you would invest 3,550 in LANSON BCC INH EO on October 23, 2024 and sell it today you would lose (140.00) from holding LANSON BCC INH EO or give up 3.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
G III Apparel Group vs. LANSON BCC INH EO
Performance |
| Timeline |
| G III Apparel |
| LANSON BCC INH |
G-III Apparel and LANSON-BCC INH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G-III Apparel and LANSON-BCC INH
The main advantage of trading using opposite G-III Apparel and LANSON-BCC INH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G-III Apparel position performs unexpectedly, LANSON-BCC INH 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 LANSON-BCC INH will offset losses from the drop in LANSON-BCC INH's long position.| G-III Apparel vs. Apple Inc | G-III Apparel vs. Apple Inc | G-III Apparel vs. Apple Inc | G-III Apparel vs. Apple Inc |
| LANSON-BCC INH vs. Altia Oyj | LANSON-BCC INH vs. VIRGIN WINES UK | LANSON-BCC INH vs. Superior Plus Corp | LANSON-BCC INH vs. Origin Agritech |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |