Correlation Between Aurubis AG and G III
Can any of the company-specific risk be diversified away by investing in both Aurubis AG 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 Aurubis AG and G III into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurubis AG and G III Apparel Group, you can compare the effects of market volatilities on Aurubis AG 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 Aurubis AG with a short position of G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurubis AG and G III.
Diversification Opportunities for Aurubis AG and G III
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aurubis and GI4 is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Aurubis AG 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 Aurubis AG 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 Aurubis AG 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 Aurubis AG i.e., Aurubis AG and G III go up and down completely randomly.
Pair Corralation between Aurubis AG and G III
Assuming the 90 days trading horizon Aurubis AG is expected to generate 1.05 times less return on investment than G III. In addition to that, Aurubis AG is 1.12 times more volatile than G III Apparel Group. It trades about 0.03 of its total potential returns per unit of risk. G III Apparel Group is currently generating about 0.04 per unit of volatility. If you would invest 2,900 in G III Apparel Group on October 26, 2024 and sell it today you would earn a total of 100.00 from holding G III Apparel Group or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurubis AG vs. G III Apparel Group
Performance |
| Timeline |
| Aurubis AG |
| G III Apparel |
Aurubis AG and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurubis AG and G III
The main advantage of trading using opposite Aurubis AG and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurubis AG 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.| Aurubis AG vs. VIRGIN WINES UK | Aurubis AG vs. FAST RETAIL ADR | Aurubis AG vs. H2O Retailing | Aurubis AG vs. CarsalesCom |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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