Correlation Between G-III Apparel and ZIJIN MINING

Can any of the company-specific risk be diversified away by investing in both G-III Apparel and ZIJIN MINING 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 G-III Apparel and ZIJIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between G III Apparel Group and ZIJIN MINING H , you can compare the effects of market volatilities on G-III Apparel and ZIJIN MINING 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 G-III Apparel with a short position of ZIJIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of G-III Apparel and ZIJIN MINING.

Diversification Opportunities for G-III Apparel and ZIJIN MINING

0.0

Correlation Coefficient

G-III Apparel  ZIJIN MINING

Pay attention - limited upside

The 3 months correlation between G-III and ZIJIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and ZIJIN MINING H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZIJIN MINING H and G-III Apparel 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 G III Apparel Group are associated (or correlated) with ZIJIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZIJIN MINING H has no effect on the direction of G-III Apparel i.e., G-III Apparel and ZIJIN MINING go up and down completely randomly.

Pair Corralation between G-III Apparel and ZIJIN MINING

If you would invest  1,860  in G III Apparel Group on October 22, 2024 and sell it today you would earn a total of  1,100  from holding G III Apparel Group or generate 59.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.25%
Values	Daily Returns

G III Apparel Group  vs.  ZIJIN MINING H

G III Apparel

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in G III Apparel Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, G-III Apparel is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

ZIJIN MINING H

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ZIJIN MINING H has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ZIJIN MINING is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with G-III Apparel and ZIJIN MINING

The main advantage of trading using opposite G-III Apparel and ZIJIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G-III Apparel position performs unexpectedly, ZIJIN MINING 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 ZIJIN MINING will offset losses from the drop in ZIJIN MINING's long position.

The idea behind G III Apparel Group and ZIJIN MINING H 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.