Correlation Between G III and Thor Industries
Can any of the company-specific risk be diversified away by investing in both G III and Thor 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 Thor 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 Thor Industries, you can compare the effects of market volatilities on G III and Thor 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 Thor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and Thor Industries.
Diversification Opportunities for G III and Thor Industries
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GIII and Thor is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and Thor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor 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 Thor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Industries has no effect on the direction of G III i.e., G III and Thor Industries go up and down completely randomly.
Pair Corralation between G III and Thor Industries
Given the investment horizon of 90 days G III Apparel Group is expected to generate 1.18 times more return on investment than Thor Industries. However, G III is 1.18 times more volatile than Thor Industries. It trades about -0.23 of its potential returns per unit of risk. Thor Industries is currently generating about -0.32 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G III Apparel Group vs. Thor Industries
Performance |
| Timeline |
| G III Apparel |
| Thor Industries |
G III and Thor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and Thor Industries
The main advantage of trading using opposite G III and Thor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, Thor 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 Thor Industries will offset losses from the drop in Thor Industries' long position.| G III vs. Oxford Industries | G III vs. Ermenegildo Zegna NV | G III vs. Kontoor Brands | G III vs. Columbia Sportswear |
| Thor Industries vs. Marine Products | Thor Industries vs. Malibu Boats | Thor Industries vs. Brunswick | Thor Industries vs. LCI Industries |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |