Correlation Between PREMIER FOODS and G-III Apparel

Can any of the company-specific risk be diversified away by investing in both PREMIER FOODS 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 PREMIER FOODS 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 PREMIER FOODS and G III Apparel Group, you can compare the effects of market volatilities on PREMIER FOODS 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 PREMIER FOODS with a short position of G-III Apparel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PREMIER FOODS and G-III Apparel.

Diversification Opportunities for PREMIER FOODS and G-III Apparel

0.0

Correlation Coefficient

PREMIER FOODS  G-III Apparel

Pay attention - limited upside

The 3 months correlation between PREMIER and G-III is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PREMIER FOODS 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 PREMIER FOODS 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 PREMIER FOODS 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 PREMIER FOODS i.e., PREMIER FOODS and G-III Apparel go up and down completely randomly.

Pair Corralation between PREMIER FOODS and G-III Apparel

If you would invest  0.00  in G III Apparel Group on December 30, 2024 and sell it today you would earn a total of  0.00  from holding G III Apparel Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

PREMIER FOODS  vs.  G III Apparel Group

PREMIER FOODS

Risk-Adjusted Performance

Very Weak

Over the last 90 days PREMIER FOODS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, PREMIER FOODS is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

G III Apparel

Risk-Adjusted Performance

Very Weak

Over the last 90 days G III Apparel Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, G-III Apparel is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PREMIER FOODS and G-III Apparel

The main advantage of trading using opposite PREMIER FOODS and G-III Apparel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PREMIER FOODS 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.

The idea behind PREMIER FOODS and G III Apparel Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..