Correlation Between G-III Apparel and ODYSSEY GOLD
Can any of the company-specific risk be diversified away by investing in both G-III Apparel and ODYSSEY GOLD 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 ODYSSEY GOLD 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 ODYSSEY GOLD LTD, you can compare the effects of market volatilities on G-III Apparel and ODYSSEY GOLD 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 ODYSSEY GOLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of G-III Apparel and ODYSSEY GOLD.
Diversification Opportunities for G-III Apparel and ODYSSEY GOLD
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between G-III and ODYSSEY is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and ODYSSEY GOLD LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ODYSSEY GOLD LTD 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 ODYSSEY GOLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ODYSSEY GOLD LTD has no effect on the direction of G-III Apparel i.e., G-III Apparel and ODYSSEY GOLD go up and down completely randomly.
Pair Corralation between G-III Apparel and ODYSSEY GOLD
Assuming the 90 days trading horizon G-III Apparel is expected to generate 2.71 times less return on investment than ODYSSEY GOLD. But when comparing it to its historical volatility, G III Apparel Group is 4.29 times less risky than ODYSSEY GOLD. It trades about 0.06 of its potential returns per unit of risk. ODYSSEY GOLD LTD is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2.20 in ODYSSEY GOLD LTD on October 13, 2024 and sell it today you would lose (1.35) from holding ODYSSEY GOLD LTD or give up 61.36% 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. ODYSSEY GOLD LTD
Performance |
| Timeline |
| G III Apparel |
| ODYSSEY GOLD LTD |
G-III Apparel and ODYSSEY GOLD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G-III Apparel and ODYSSEY GOLD
The main advantage of trading using opposite G-III Apparel and ODYSSEY GOLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G-III Apparel position performs unexpectedly, ODYSSEY GOLD 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 ODYSSEY GOLD will offset losses from the drop in ODYSSEY GOLD's long position.| G-III Apparel vs. Zoom Video Communications | G-III Apparel vs. HANOVER INSURANCE | G-III Apparel vs. REVO INSURANCE SPA | G-III Apparel vs. Universal Insurance Holdings |
| ODYSSEY GOLD vs. G III Apparel Group | ODYSSEY GOLD vs. SALESFORCE INC CDR | ODYSSEY GOLD vs. PACIFIC ONLINE | ODYSSEY GOLD vs. Summit Hotel Properties |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |