Correlation Between G III and Victorias Secret
Can any of the company-specific risk be diversified away by investing in both G III and Victorias Secret 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 Victorias Secret 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 Victorias Secret Co, you can compare the effects of market volatilities on G III and Victorias Secret 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 Victorias Secret. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and Victorias Secret.
Diversification Opportunities for G III and Victorias Secret
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GIII and Victorias is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and Victorias Secret Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victorias Secret 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 Victorias Secret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victorias Secret has no effect on the direction of G III i.e., G III and Victorias Secret go up and down completely randomly.
Pair Corralation between G III and Victorias Secret
Given the investment horizon of 90 days G III Apparel Group is expected to generate 0.78 times more return on investment than Victorias Secret. However, G III Apparel Group is 1.28 times less risky than Victorias Secret. It trades about -0.07 of its potential returns per unit of risk. Victorias Secret Co is currently generating about -0.28 per unit of risk. If you would invest 3,214 in G III Apparel Group on November 4, 2024 and sell it today you would lose (92.00) from holding G III Apparel Group or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G III Apparel Group vs. Victorias Secret Co
Performance |
| Timeline |
| G III Apparel |
| Victorias Secret |
G III and Victorias Secret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and Victorias Secret
The main advantage of trading using opposite G III and Victorias Secret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, Victorias Secret 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 Victorias Secret will offset losses from the drop in Victorias Secret's long position.| G III vs. Oxford Industries | G III vs. Ermenegildo Zegna NV | G III vs. Kontoor Brands | G III vs. Columbia Sportswear |
| Victorias Secret vs. Ross Stores | Victorias Secret vs. Childrens Place | Victorias Secret vs. Buckle Inc | Victorias Secret vs. Guess Inc |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |