Correlation Between Superior Uniform and Gildan Activewear
Can any of the company-specific risk be diversified away by investing in both Superior Uniform and Gildan Activewear 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 Superior Uniform and Gildan Activewear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Uniform Group and Gildan Activewear, you can compare the effects of market volatilities on Superior Uniform and Gildan Activewear 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 Superior Uniform with a short position of Gildan Activewear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Uniform and Gildan Activewear.
Diversification Opportunities for Superior Uniform and Gildan Activewear
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Superior and Gildan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Superior Uniform Group and Gildan Activewear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gildan Activewear and Superior Uniform 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 Superior Uniform Group are associated (or correlated) with Gildan Activewear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gildan Activewear has no effect on the direction of Superior Uniform i.e., Superior Uniform and Gildan Activewear go up and down completely randomly.
Pair Corralation between Superior Uniform and Gildan Activewear
Considering the 90-day investment horizon Superior Uniform Group is expected to generate 2.97 times more return on investment than Gildan Activewear. However, Superior Uniform is 2.97 times more volatile than Gildan Activewear. It trades about 0.21 of its potential returns per unit of risk. Gildan Activewear is currently generating about 0.19 per unit of risk. If you would invest 1,489 in Superior Uniform Group on August 28, 2024 and sell it today you would earn a total of 190.00 from holding Superior Uniform Group or generate 12.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Uniform Group vs. Gildan Activewear
Performance |
| Timeline |
| Superior Uniform |
| Gildan Activewear |
Superior Uniform and Gildan Activewear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Uniform and Gildan Activewear
The main advantage of trading using opposite Superior Uniform and Gildan Activewear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Uniform position performs unexpectedly, Gildan Activewear 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 Gildan Activewear will offset losses from the drop in Gildan Activewear's long position.| Superior Uniform vs. Lakeland Industries | Superior Uniform vs. Jerash Holdings | Superior Uniform vs. G III Apparel Group | Superior Uniform vs. JX Luxventure Limited |
| Gildan Activewear vs. Vince Holding Corp | Gildan Activewear vs. Ermenegildo Zegna NV | Gildan Activewear vs. Columbia Sportswear | Gildan Activewear vs. G III Apparel Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |