Correlation Between Gildan Activewear and Sacks Parente
Can any of the company-specific risk be diversified away by investing in both Gildan Activewear and Sacks Parente 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 Sacks Parente into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gildan Activewear and Sacks Parente Golf,, you can compare the effects of market volatilities on Gildan Activewear and Sacks Parente 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 Sacks Parente. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gildan Activewear and Sacks Parente.
Diversification Opportunities for Gildan Activewear and Sacks Parente
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gildan and Sacks is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Gildan Activewear and Sacks Parente Golf, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sacks Parente Golf, 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 Sacks Parente. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sacks Parente Golf, has no effect on the direction of Gildan Activewear i.e., Gildan Activewear and Sacks Parente go up and down completely randomly.
Pair Corralation between Gildan Activewear and Sacks Parente
Considering the 90-day investment horizon Gildan Activewear is expected to generate 0.13 times more return on investment than Sacks Parente. However, Gildan Activewear is 7.65 times less risky than Sacks Parente. It trades about 0.23 of its potential returns per unit of risk. Sacks Parente Golf, is currently generating about -0.08 per unit of risk. If you would invest 3,703 in Gildan Activewear on August 28, 2024 and sell it today you would earn a total of 1,297 from holding Gildan Activewear or generate 35.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gildan Activewear vs. Sacks Parente Golf,
Performance |
| Timeline |
| Gildan Activewear |
| Sacks Parente Golf, |
Gildan Activewear and Sacks Parente Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gildan Activewear and Sacks Parente
The main advantage of trading using opposite Gildan Activewear and Sacks Parente positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gildan Activewear position performs unexpectedly, Sacks Parente 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 Sacks Parente will offset losses from the drop in Sacks Parente'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 |
| Sacks Parente vs. Old Dominion Freight | Sacks Parente vs. Yuexiu Transport Infrastructure | Sacks Parente vs. Verra Mobility Corp | Sacks Parente vs. Zhihu Inc ADR |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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