Correlation Between G III and SIA Engineering

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both G III and SIA Engineering 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 SIA Engineering 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 SIA Engineering, you can compare the effects of market volatilities on G III and SIA Engineering 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 SIA Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and SIA Engineering.

Diversification Opportunities for G III and SIA Engineering

0.21
  Correlation Coefficient

Modest diversification

The 3 months correlation between GIII and SIA is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and SIA Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIA Engineering 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 SIA Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIA Engineering has no effect on the direction of G III i.e., G III and SIA Engineering go up and down completely randomly.

Pair Corralation between G III and SIA Engineering

If you would invest  3,011  in G III Apparel Group on October 23, 2024 and sell it today you would earn a total of  80.00  from holding G III Apparel Group or generate 2.66% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy92.68%
ValuesDaily Returns

G III Apparel Group  vs.  SIA Engineering

 Performance 
       Timeline  
G III Apparel 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Very Weak
Compared to the overall equity markets, risk-adjusted returns on investments in G III Apparel Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, G III is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.
SIA Engineering 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in SIA Engineering are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, SIA Engineering is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

G III and SIA Engineering Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with G III and SIA Engineering

The main advantage of trading using opposite G III and SIA Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, SIA Engineering 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 SIA Engineering will offset losses from the drop in SIA Engineering's long position.
The idea behind G III Apparel Group and SIA Engineering pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Bonds Directory
Find actively traded corporate debentures issued by US companies
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities