Correlation Between Gildan Activewear and Spin Master
Can any of the company-specific risk be diversified away by investing in both Gildan Activewear and Spin Master 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 Gildan Activewear and Spin Master into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gildan Activewear and Spin Master Corp, you can compare the effects of market volatilities on Gildan Activewear and Spin Master 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 Gildan Activewear with a short position of Spin Master. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gildan Activewear and Spin Master.
Diversification Opportunities for Gildan Activewear and Spin Master
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gildan and Spin is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Gildan Activewear and Spin Master Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spin Master Corp and Gildan Activewear 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 Gildan Activewear are associated (or correlated) with Spin Master. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spin Master Corp has no effect on the direction of Gildan Activewear i.e., Gildan Activewear and Spin Master go up and down completely randomly.
Pair Corralation between Gildan Activewear and Spin Master
Assuming the 90 days trading horizon Gildan Activewear is expected to generate 0.97 times more return on investment than Spin Master. However, Gildan Activewear is 1.03 times less risky than Spin Master. It trades about 0.11 of its potential returns per unit of risk. Spin Master Corp is currently generating about 0.0 per unit of risk. If you would invest 3,960 in Gildan Activewear on August 26, 2024 and sell it today you would earn a total of 3,003 from holding Gildan Activewear or generate 75.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gildan Activewear vs. Spin Master Corp
Performance |
| Timeline |
| Gildan Activewear |
| Spin Master Corp |
Gildan Activewear and Spin Master Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gildan Activewear and Spin Master
The main advantage of trading using opposite Gildan Activewear and Spin Master positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gildan Activewear position performs unexpectedly, Spin Master 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 Spin Master will offset losses from the drop in Spin Master's long position.| Gildan Activewear vs. Saputo Inc | Gildan Activewear vs. CCL Industries | Gildan Activewear vs. Thomson Reuters Corp | Gildan Activewear vs. George Weston Limited |
| Spin Master vs. Kinaxis | Spin Master vs. Premium Brands Holdings | Spin Master vs. Gildan Activewear | Spin Master vs. CCL 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| CEOs Directory Screen CEOs from public companies around the world |