Correlation Between United States and G III
Can any of the company-specific risk be diversified away by investing in both United States 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 United States and G III into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Steel and G III Apparel Group, you can compare the effects of market volatilities on United States 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 United States with a short position of G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and G III.
Diversification Opportunities for United States and G III
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and GI4 is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel 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 United States 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 United States Steel 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 United States i.e., United States and G III go up and down completely randomly.
Pair Corralation between United States and G III
Assuming the 90 days trading horizon United States is expected to generate 1.14 times less return on investment than G III. In addition to that, United States is 1.02 times more volatile than G III Apparel Group. It trades about 0.05 of its total potential returns per unit of risk. G III Apparel Group is currently generating about 0.06 per unit of volatility. If you would invest 1,730 in G III Apparel Group on October 30, 2024 and sell it today you would earn a total of 1,370 from holding G III Apparel Group or generate 79.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.75% |
| Values | Daily Returns |
United States Steel vs. G III Apparel Group
Performance |
| Timeline |
| United States Steel |
| G III Apparel |
United States and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and G III
The main advantage of trading using opposite United States and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States 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.| United States vs. AWILCO DRILLING PLC | United States vs. ELL ENVIRONHLDGS HD 0001 | United States vs. Olympic Steel | United States vs. COSMOSTEEL HLDGS |
| G III vs. Cardinal Health | G III vs. OPKO HEALTH | G III vs. Air Transport Services | G III vs. Fortescue Metals 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |