Correlation Between G III and Xcel Brands
Can any of the company-specific risk be diversified away by investing in both G III and Xcel Brands 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 Xcel Brands 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 Xcel Brands, you can compare the effects of market volatilities on G III and Xcel Brands 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 Xcel Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and Xcel Brands.
Diversification Opportunities for G III and Xcel Brands
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GIII and Xcel is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and Xcel Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xcel Brands 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 Xcel Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xcel Brands has no effect on the direction of G III i.e., G III and Xcel Brands go up and down completely randomly.
Pair Corralation between G III and Xcel Brands
Given the investment horizon of 90 days G III Apparel Group is expected to generate 0.44 times more return on investment than Xcel Brands. However, G III Apparel Group is 2.28 times less risky than Xcel Brands. It trades about 0.03 of its potential returns per unit of risk. Xcel Brands is currently generating about -0.21 per unit of risk. If you would invest 3,262 in G III Apparel Group on November 1, 2024 and sell it today you would earn a total of 26.00 from holding G III Apparel Group or generate 0.8% return on investment 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. Xcel Brands
Performance |
| Timeline |
| G III Apparel |
| Xcel Brands |
G III and Xcel Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and Xcel Brands
The main advantage of trading using opposite G III and Xcel Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, Xcel Brands 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 Xcel Brands will offset losses from the drop in Xcel Brands' long position.| G III vs. Oxford Industries | G III vs. Ermenegildo Zegna NV | G III vs. Kontoor Brands | G III vs. Columbia Sportswear |
| Xcel Brands vs. H M Hennes | Xcel Brands vs. Under Armour C | Xcel Brands vs. H M Hennes | Xcel Brands vs. Oxford 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |