Correlation Between URBAN OUTFITTERS and G-III Apparel
Can any of the company-specific risk be diversified away by investing in both URBAN OUTFITTERS 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 URBAN OUTFITTERS 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 URBAN OUTFITTERS and G III Apparel Group, you can compare the effects of market volatilities on URBAN OUTFITTERS 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 URBAN OUTFITTERS with a short position of G-III Apparel. Check out your portfolio center. Please also check ongoing floating volatility patterns of URBAN OUTFITTERS and G-III Apparel.
Diversification Opportunities for URBAN OUTFITTERS and G-III Apparel
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between URBAN and G-III is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding URBAN OUTFITTERS 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 URBAN OUTFITTERS 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 URBAN OUTFITTERS 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 URBAN OUTFITTERS i.e., URBAN OUTFITTERS and G-III Apparel go up and down completely randomly.
Pair Corralation between URBAN OUTFITTERS and G-III Apparel
Assuming the 90 days trading horizon URBAN OUTFITTERS is expected to generate 2.25 times more return on investment than G-III Apparel. However, URBAN OUTFITTERS is 2.25 times more volatile than G III Apparel Group. It trades about 0.34 of its potential returns per unit of risk. G III Apparel Group is currently generating about 0.03 per unit of risk. If you would invest 3,300 in URBAN OUTFITTERS on September 1, 2024 and sell it today you would earn a total of 1,180 from holding URBAN OUTFITTERS or generate 35.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
URBAN OUTFITTERS vs. G III Apparel Group
Performance |
| Timeline |
| URBAN OUTFITTERS |
| G III Apparel |
URBAN OUTFITTERS and G-III Apparel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with URBAN OUTFITTERS and G-III Apparel
The main advantage of trading using opposite URBAN OUTFITTERS and G-III Apparel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if URBAN OUTFITTERS 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.| URBAN OUTFITTERS vs. PARKEN Sport Entertainment | URBAN OUTFITTERS vs. Air Transport Services | URBAN OUTFITTERS vs. INTERCONT HOTELS | URBAN OUTFITTERS vs. NTG Nordic Transport |
| G-III Apparel vs. Apple Inc | G-III Apparel vs. Apple Inc | G-III Apparel vs. Apple Inc | G-III Apparel vs. Apple Inc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Transaction History View history of all your transactions and understand their impact on performance |