Correlation Between G III and JXJT Old
Can any of the company-specific risk be diversified away by investing in both G III and JXJT Old 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 JXJT Old 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 JXJT Old, you can compare the effects of market volatilities on G III and JXJT Old 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 JXJT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and JXJT Old.
Diversification Opportunities for G III and JXJT Old
Very good diversification
The 3 months correlation between GIII and JXJT is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and JXJT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JXJT Old 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 JXJT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JXJT Old has no effect on the direction of G III i.e., G III and JXJT Old go up and down completely randomly.
Pair Corralation between G III and JXJT Old
Given the investment horizon of 90 days G III Apparel Group is expected to generate 0.37 times more return on investment than JXJT Old. However, G III Apparel Group is 2.69 times less risky than JXJT Old. It trades about 0.08 of its potential returns per unit of risk. JXJT Old is currently generating about -0.21 per unit of risk. If you would invest 3,000 in G III Apparel Group on November 1, 2024 and sell it today you would earn a total of 288.00 from holding G III Apparel Group or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 58.33% |
| Values | Daily Returns |
G III Apparel Group vs. JXJT Old
Performance |
| Timeline |
| G III Apparel |
| JXJT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
G III and JXJT Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and JXJT Old
The main advantage of trading using opposite G III and JXJT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, JXJT Old 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 JXJT Old will offset losses from the drop in JXJT Old's long position.| G III vs. Oxford Industries | G III vs. Ermenegildo Zegna NV | G III vs. Kontoor Brands | G III vs. Columbia Sportswear |
| JXJT Old vs. G III Apparel Group | JXJT Old vs. Lakeland Industries | JXJT Old vs. Oxford Industries | JXJT Old vs. Superior Uniform 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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