Correlation Between G III and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both G III and ANTA Sports 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 ANTA Sports 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 ANTA Sports Products, you can compare the effects of market volatilities on G III and ANTA Sports 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 ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and ANTA Sports.
Diversification Opportunities for G III and ANTA Sports
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GIII and ANTA is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products 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 ANTA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA Sports Products has no effect on the direction of G III i.e., G III and ANTA Sports go up and down completely randomly.
Pair Corralation between G III and ANTA Sports
Given the investment horizon of 90 days G III Apparel Group is expected to generate 1.03 times more return on investment than ANTA Sports. However, G III is 1.03 times more volatile than ANTA Sports Products. It trades about -0.23 of its potential returns per unit of risk. ANTA Sports Products is currently generating about -0.25 per unit of risk. If you would invest 3,521 in G III Apparel Group on October 12, 2024 and sell it today you would lose (301.00) from holding G III Apparel Group or give up 8.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G III Apparel Group vs. ANTA Sports Products
Performance |
| Timeline |
| G III Apparel |
| ANTA Sports Products |
G III and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and ANTA Sports
The main advantage of trading using opposite G III and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, ANTA Sports 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 ANTA Sports will offset losses from the drop in ANTA Sports' long position.| G III vs. Oxford Industries | G III vs. Ermenegildo Zegna NV | G III vs. Kontoor Brands | G III vs. Columbia Sportswear |
| ANTA Sports vs. TWC Enterprises Limited | ANTA Sports vs. ANTA Sports Products | ANTA Sports vs. Brownies Marine Group | ANTA Sports vs. Golden Heaven Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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