Correlation Between Thor Industries and G III
Can any of the company-specific risk be diversified away by investing in both Thor Industries 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 Thor Industries and G III into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thor Industries and G III Apparel Group, you can compare the effects of market volatilities on Thor Industries 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 Thor Industries with a short position of G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Industries and G III.
Diversification Opportunities for Thor Industries and G III
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thor and GIII is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Thor Industries 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 Thor Industries 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 Thor Industries 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 Thor Industries i.e., Thor Industries and G III go up and down completely randomly.
Pair Corralation between Thor Industries and G III
Considering the 90-day investment horizon Thor Industries is expected to generate 1.21 times more return on investment than G III. However, Thor Industries is 1.21 times more volatile than G III Apparel Group. It trades about 0.13 of its potential returns per unit of risk. G III Apparel Group is currently generating about -0.17 per unit of risk. If you would invest 9,635 in Thor Industries on October 27, 2024 and sell it today you would earn a total of 411.00 from holding Thor Industries or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thor Industries vs. G III Apparel Group
Performance |
| Timeline |
| Thor Industries |
| G III Apparel |
Thor Industries and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Industries and G III
The main advantage of trading using opposite Thor Industries and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Industries 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.| Thor Industries vs. Ford Motor | Thor Industries vs. General Motors | Thor Industries vs. Goodyear Tire Rubber | Thor Industries vs. Li Auto |
| G III vs. Oxford Industries | G III vs. Ermenegildo Zegna NV | G III vs. Kontoor Brands | G III vs. Columbia Sportswear |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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