Correlation Between G-III Apparel and Meiko Electronics
Can any of the company-specific risk be diversified away by investing in both G-III Apparel and Meiko Electronics 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 Meiko Electronics 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 Meiko Electronics Co, you can compare the effects of market volatilities on G-III Apparel and Meiko Electronics 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 Meiko Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of G-III Apparel and Meiko Electronics.
Diversification Opportunities for G-III Apparel and Meiko Electronics
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between G-III and Meiko is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and Meiko Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiko Electronics 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 Meiko Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiko Electronics has no effect on the direction of G-III Apparel i.e., G-III Apparel and Meiko Electronics go up and down completely randomly.
Pair Corralation between G-III Apparel and Meiko Electronics
Assuming the 90 days trading horizon G III Apparel Group is expected to under-perform the Meiko Electronics. In addition to that, G-III Apparel is 1.1 times more volatile than Meiko Electronics Co. It trades about -0.19 of its total potential returns per unit of risk. Meiko Electronics Co is currently generating about -0.14 per unit of volatility. If you would invest 5,550 in Meiko Electronics Co on October 23, 2024 and sell it today you would lose (200.00) from holding Meiko Electronics Co or give up 3.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G III Apparel Group vs. Meiko Electronics Co
Performance |
| Timeline |
| G III Apparel |
| Meiko Electronics |
G-III Apparel and Meiko Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G-III Apparel and Meiko Electronics
The main advantage of trading using opposite G-III Apparel and Meiko Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G-III Apparel position performs unexpectedly, Meiko Electronics 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 Meiko Electronics will offset losses from the drop in Meiko Electronics' 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 |
| Meiko Electronics vs. ASM Pacific Technology | Meiko Electronics vs. X FAB Silicon Foundries | Meiko Electronics vs. G III Apparel Group | Meiko Electronics vs. FANDIFI TECHNOLOGY P |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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