Correlation Between Gildan Activewear and Terra Energy
Can any of the company-specific risk be diversified away by investing in both Gildan Activewear and Terra Energy 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 Terra Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gildan Activewear and Terra Energy Corp, you can compare the effects of market volatilities on Gildan Activewear and Terra Energy 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 Terra Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gildan Activewear and Terra Energy.
Diversification Opportunities for Gildan Activewear and Terra Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gildan and Terra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gildan Activewear and Terra Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terra Energy 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 Terra Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terra Energy Corp has no effect on the direction of Gildan Activewear i.e., Gildan Activewear and Terra Energy go up and down completely randomly.
Pair Corralation between Gildan Activewear and Terra Energy
If you would invest 2,915 in Gildan Activewear on October 13, 2024 and sell it today you would earn a total of 1,915 from holding Gildan Activewear or generate 65.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 89.11% |
| Values | Daily Returns |
Gildan Activewear vs. Terra Energy Corp
Performance |
| Timeline |
| Gildan Activewear |
| Terra Energy Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gildan Activewear and Terra Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gildan Activewear and Terra Energy
The main advantage of trading using opposite Gildan Activewear and Terra Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gildan Activewear position performs unexpectedly, Terra Energy 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 Terra Energy will offset losses from the drop in Terra Energy'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 |
| Terra Energy vs. Ralph Lauren Corp | Terra Energy vs. Gildan Activewear | Terra Energy vs. Sonos Inc | Terra Energy vs. Playa Hotels Resorts |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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