Correlation Between PT Steel and G-III Apparel
Can any of the company-specific risk be diversified away by investing in both PT Steel 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 PT Steel 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 PT Steel Pipe and G III Apparel Group, you can compare the effects of market volatilities on PT Steel 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 PT Steel with a short position of G-III Apparel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Steel and G-III Apparel.
Diversification Opportunities for PT Steel and G-III Apparel
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between S08 and G-III is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding PT Steel Pipe 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 PT Steel 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 PT Steel Pipe 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 PT Steel i.e., PT Steel and G-III Apparel go up and down completely randomly.
Pair Corralation between PT Steel and G-III Apparel
Assuming the 90 days horizon PT Steel Pipe is expected to generate 4.55 times more return on investment than G-III Apparel. However, PT Steel is 4.55 times more volatile than G III Apparel Group. It trades about 0.01 of its potential returns per unit of risk. G III Apparel Group is currently generating about -0.21 per unit of risk. If you would invest 1.20 in PT Steel Pipe on October 17, 2024 and sell it today you would lose (0.05) from holding PT Steel Pipe or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
PT Steel Pipe vs. G III Apparel Group
Performance |
| Timeline |
| PT Steel Pipe |
| G III Apparel |
PT Steel and G-III Apparel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Steel and G-III Apparel
The main advantage of trading using opposite PT Steel and G-III Apparel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Steel 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.| PT Steel vs. HEALTHSTREAM | PT Steel vs. Playmates Toys Limited | PT Steel vs. USWE SPORTS AB | PT Steel vs. PURETECH HEALTH PLC |
| G-III Apparel vs. United States Steel | G-III Apparel vs. ALGOMA STEEL GROUP | G-III Apparel vs. PT Steel Pipe | G-III Apparel vs. NEW MILLENNIUM IRON |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |