Correlation Between G III and Oxford Industries
Can any of the company-specific risk be diversified away by investing in both G III and Oxford Industries 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 Oxford Industries 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 Oxford Industries, you can compare the effects of market volatilities on G III and Oxford Industries 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 Oxford Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and Oxford Industries.
Diversification Opportunities for G III and Oxford Industries
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GIII and Oxford is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and Oxford Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Industries 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 Oxford Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Industries has no effect on the direction of G III i.e., G III and Oxford Industries go up and down completely randomly.
Pair Corralation between G III and Oxford Industries
Given the investment horizon of 90 days G III Apparel Group is expected to under-perform the Oxford Industries. But the stock apears to be less risky and, when comparing its historical volatility, G III Apparel Group is 1.1 times less risky than Oxford Industries. The stock trades about -0.15 of its potential returns per unit of risk. The Oxford Industries is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,511 in Oxford Industries on August 24, 2024 and sell it today you would earn a total of 114.00 from holding Oxford Industries or generate 1.52% 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. Oxford Industries
Performance |
| Timeline |
| G III Apparel |
| Oxford Industries |
G III and Oxford Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and Oxford Industries
The main advantage of trading using opposite G III and Oxford Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, Oxford Industries 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 Oxford Industries will offset losses from the drop in Oxford Industries' long position.| G III vs. Oxford Industries | G III vs. Ermenegildo Zegna NV | G III vs. Kontoor Brands | G III vs. Columbia Sportswear |
| Oxford Industries vs. G III Apparel Group | Oxford Industries vs. Ermenegildo Zegna NV | Oxford Industries vs. Kontoor Brands | Oxford Industries vs. Columbia Sportswear |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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