Correlation Between Gildan Activewear and G III
Can any of the company-specific risk be diversified away by investing in both Gildan Activewear and G III 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 G III into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gildan Activewear and G III Apparel Group, you can compare the effects of market volatilities on Gildan Activewear and G III 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 G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gildan Activewear and G III.
Diversification Opportunities for Gildan Activewear and G III
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gildan and GIII is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Gildan Activewear and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel 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 G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of Gildan Activewear i.e., Gildan Activewear and G III go up and down completely randomly.
Pair Corralation between Gildan Activewear and G III
Considering the 90-day investment horizon Gildan Activewear is expected to generate 0.54 times more return on investment than G III. However, Gildan Activewear is 1.84 times less risky than G III. It trades about 0.19 of its potential returns per unit of risk. G III Apparel Group is currently generating about -0.02 per unit of risk. If you would invest 4,819 in Gildan Activewear on August 27, 2024 and sell it today you would earn a total of 181.00 from holding Gildan Activewear or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gildan Activewear vs. G III Apparel Group
Performance |
| Timeline |
| Gildan Activewear |
| G III Apparel |
Gildan Activewear and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gildan Activewear and G III
The main advantage of trading using opposite Gildan Activewear and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gildan Activewear position performs unexpectedly, G III 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 G III will offset losses from the drop in G III's long position.| Gildan Activewear vs. Vince Holding Corp | Gildan Activewear vs. Ermenegildo Zegna NV | Gildan Activewear vs. Columbia Sportswear | Gildan Activewear vs. G III Apparel Group |
| G III vs. Oxford Industries | G III vs. Ermenegildo Zegna NV | G III vs. Kontoor Brands | G III vs. Columbia Sportswear |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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