Correlation Between G III and KOBE STEEL
Can any of the company-specific risk be diversified away by investing in both G III and KOBE STEEL 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 KOBE STEEL 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 KOBE STEEL LTD, you can compare the effects of market volatilities on G III and KOBE STEEL 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 KOBE STEEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and KOBE STEEL.
Diversification Opportunities for G III and KOBE STEEL
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GI4 and KOBE is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and KOBE STEEL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOBE STEEL 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 KOBE STEEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOBE STEEL LTD has no effect on the direction of G III i.e., G III and KOBE STEEL go up and down completely randomly.
Pair Corralation between G III and KOBE STEEL
Assuming the 90 days trading horizon G III is expected to generate 3.23 times less return on investment than KOBE STEEL. In addition to that, G III is 1.11 times more volatile than KOBE STEEL LTD. It trades about 0.05 of its total potential returns per unit of risk. KOBE STEEL LTD is currently generating about 0.17 per unit of volatility. If you would invest 969.00 in KOBE STEEL LTD on November 7, 2024 and sell it today you would earn a total of 49.00 from holding KOBE STEEL LTD or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
G III Apparel Group vs. KOBE STEEL LTD
Performance |
| Timeline |
| G III Apparel |
| KOBE STEEL LTD |
G III and KOBE STEEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and KOBE STEEL
The main advantage of trading using opposite G III and KOBE STEEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, KOBE STEEL 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 KOBE STEEL will offset losses from the drop in KOBE STEEL's long position.| G III vs. ADRIATIC METALS LS 013355 | G III vs. NORTHEAST UTILITIES | G III vs. SCANSOURCE | G III vs. Air Transport Services |
| KOBE STEEL vs. FIREWEED METALS P | KOBE STEEL vs. MAGNUM MINING EXP | KOBE STEEL vs. DISTRICT METALS | KOBE STEEL vs. Laureate Education |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |