Correlation Between Hyster-Yale Materials and G-III APPAREL
Can any of the company-specific risk be diversified away by investing in both Hyster-Yale Materials and G-III APPAREL 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 Hyster-Yale Materials and G-III APPAREL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyster Yale Materials Handling and G III APPAREL GROUP, you can compare the effects of market volatilities on Hyster-Yale Materials and G-III APPAREL 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 Hyster-Yale Materials with a short position of G-III APPAREL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster-Yale Materials and G-III APPAREL.
Diversification Opportunities for Hyster-Yale Materials and G-III APPAREL
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hyster-Yale and G-III is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling 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 Hyster-Yale Materials 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 Hyster Yale Materials Handling are associated (or correlated) with G-III APPAREL. 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 Hyster-Yale Materials i.e., Hyster-Yale Materials and G-III APPAREL go up and down completely randomly.
Pair Corralation between Hyster-Yale Materials and G-III APPAREL
Assuming the 90 days trading horizon Hyster Yale Materials Handling is expected to under-perform the G-III APPAREL. In addition to that, Hyster-Yale Materials is 1.87 times more volatile than G III APPAREL GROUP. It trades about -0.09 of its total potential returns per unit of risk. G III APPAREL GROUP is currently generating about -0.02 per unit of volatility. If you would invest 2,840 in G III APPAREL GROUP on September 1, 2024 and sell it today you would lose (40.00) from holding G III APPAREL GROUP or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. G III APPAREL GROUP
Performance |
| Timeline |
| Hyster Yale Materials |
| G III APPAREL |
Hyster-Yale Materials and G-III APPAREL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster-Yale Materials and G-III APPAREL
The main advantage of trading using opposite Hyster-Yale Materials and G-III APPAREL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster-Yale Materials position performs unexpectedly, G-III APPAREL 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 APPAREL will offset losses from the drop in G-III APPAREL's long position.| Hyster-Yale Materials vs. Superior Plus Corp | Hyster-Yale Materials vs. NMI Holdings | Hyster-Yale Materials vs. Origin Agritech | Hyster-Yale Materials vs. SIVERS SEMICONDUCTORS AB |
| G-III APPAREL vs. Gamma Communications plc | G-III APPAREL vs. Eastman Chemical | G-III APPAREL vs. TIANDE CHEMICAL | G-III APPAREL vs. KRISPY KREME DL 01 |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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