Correlation Between Gildan Activewear and J Long
Can any of the company-specific risk be diversified away by investing in both Gildan Activewear and J Long 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 J Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gildan Activewear and J Long Group Limited, you can compare the effects of market volatilities on Gildan Activewear and J Long 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 J Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gildan Activewear and J Long.
Diversification Opportunities for Gildan Activewear and J Long
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gildan and J Long is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Gildan Activewear and J Long Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Long Group 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 J Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Long Group has no effect on the direction of Gildan Activewear i.e., Gildan Activewear and J Long go up and down completely randomly.
Pair Corralation between Gildan Activewear and J Long
Considering the 90-day investment horizon Gildan Activewear is expected to generate 0.1 times more return on investment than J Long. However, Gildan Activewear is 9.74 times less risky than J Long. It trades about 0.08 of its potential returns per unit of risk. J Long Group Limited is currently generating about -0.11 per unit of risk. If you would invest 4,897 in Gildan Activewear on September 3, 2024 and sell it today you would earn a total of 65.00 from holding Gildan Activewear or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gildan Activewear vs. J Long Group Limited
Performance |
| Timeline |
| Gildan Activewear |
| J Long Group |
Gildan Activewear and J Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gildan Activewear and J Long
The main advantage of trading using opposite Gildan Activewear and J Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gildan Activewear position performs unexpectedly, J Long 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 J Long will offset losses from the drop in J Long'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 |
| J Long vs. Xcel Brands | J Long vs. Gildan Activewear | J Long vs. Neo Concept International Group | J Long 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |