Correlation Between G-III Apparel and Shionogi

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

Diversification Opportunities for G-III Apparel and Shionogi

-0.65

Correlation Coefficient

G-III Apparel  Shionogi

Excellent diversification

The 3 months correlation between G-III and Shionogi is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and Shionogi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shionogi 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 Shionogi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shionogi has no effect on the direction of G-III Apparel i.e., G-III Apparel and Shionogi go up and down completely randomly.

Pair Corralation between G-III Apparel and Shionogi

Assuming the 90 days trading horizon G III Apparel Group is expected to under-perform the Shionogi. In addition to that, G-III Apparel is 1.12 times more volatile than Shionogi Co. It trades about -0.16 of its total potential returns per unit of risk. Shionogi Co is currently generating about 0.09 per unit of volatility. If you would invest  1,234  in Shionogi Co on December 28, 2024 and sell it today you would earn a total of  126.00  from holding Shionogi Co or generate 10.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

G III Apparel Group  vs.  Shionogi Co

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. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Shionogi

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Shionogi Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Shionogi may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with G-III Apparel and Shionogi

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

The idea behind G III Apparel Group and Shionogi Co 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 Anywhere module to track or share privately all of your investments from the convenience of any device.