Correlation Between G-III Apparel and Rogers Communications
Can any of the company-specific risk be diversified away by investing in both G-III Apparel and Rogers Communications 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 Rogers Communications 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 Rogers Communications, you can compare the effects of market volatilities on G-III Apparel and Rogers Communications 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 Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of G-III Apparel and Rogers Communications.
Diversification Opportunities for G-III Apparel and Rogers Communications
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between G-III and Rogers is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications 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 Rogers Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rogers Communications has no effect on the direction of G-III Apparel i.e., G-III Apparel and Rogers Communications go up and down completely randomly.
Pair Corralation between G-III Apparel and Rogers Communications
Assuming the 90 days trading horizon G III Apparel Group is expected to generate 2.4 times more return on investment than Rogers Communications. However, G-III Apparel is 2.4 times more volatile than Rogers Communications. It trades about 0.05 of its potential returns per unit of risk. Rogers Communications is currently generating about -0.02 per unit of risk. If you would invest 1,860 in G III Apparel Group on September 2, 2024 and sell it today you would earn a total of 940.00 from holding G III Apparel Group or generate 50.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G III Apparel Group vs. Rogers Communications
Performance |
| Timeline |
| G III Apparel |
| Rogers Communications |
G-III Apparel and Rogers Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G-III Apparel and Rogers Communications
The main advantage of trading using opposite G-III Apparel and Rogers Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G-III Apparel position performs unexpectedly, Rogers Communications 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 Rogers Communications will offset losses from the drop in Rogers Communications' 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 |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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