Correlation Between Strix Group and G-III Apparel
Can any of the company-specific risk be diversified away by investing in both Strix Group 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 Strix Group 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 Strix Group Plc and G III Apparel Group, you can compare the effects of market volatilities on Strix Group 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 Strix Group with a short position of G-III Apparel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strix Group and G-III Apparel.
Diversification Opportunities for Strix Group and G-III Apparel
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Strix and G-III is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Strix Group Plc 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 Strix Group 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 Strix Group Plc 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 Strix Group i.e., Strix Group and G-III Apparel go up and down completely randomly.
Pair Corralation between Strix Group and G-III Apparel
Assuming the 90 days horizon Strix Group Plc is expected to under-perform the G-III Apparel. In addition to that, Strix Group is 1.56 times more volatile than G III Apparel Group. It trades about -0.2 of its total potential returns per unit of risk. G III Apparel Group is currently generating about 0.08 per unit of volatility. If you would invest 2,720 in G III Apparel Group on September 4, 2024 and sell it today you would earn a total of 80.00 from holding G III Apparel Group or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Strix Group Plc vs. G III Apparel Group
Performance |
| Timeline |
| Strix Group Plc |
| G III Apparel |
Strix Group and G-III Apparel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strix Group and G-III Apparel
The main advantage of trading using opposite Strix Group and G-III Apparel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strix Group 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.| Strix Group vs. G III Apparel Group | Strix Group vs. Canadian Utilities Limited | Strix Group vs. NORTHEAST UTILITIES | Strix Group vs. Molson Coors Beverage |
| G-III Apparel vs. H M Hennes | G-III Apparel vs. H M Hennes | G-III Apparel vs. VF Corporation | G-III Apparel vs. Bosideng International Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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