Correlation Between G III and Bangkok Dusit

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

Diversification Opportunities for G III and Bangkok Dusit

0.0

Correlation Coefficient

G III  Bangkok Dusit

Pay attention - limited upside

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

Pair Corralation between G III and Bangkok Dusit

If you would invest  3,035  in G III Apparel Group on October 10, 2024 and sell it today you would earn a total of  201.00  from holding G III Apparel Group or generate 6.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

G III Apparel Group  vs.  Bangkok Dusit Medical

G III Apparel

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in G III Apparel Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating forward indicators, G III may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Bangkok Dusit Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bangkok Dusit Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Bangkok Dusit is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with G III and Bangkok Dusit

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

The idea behind G III Apparel Group and Bangkok Dusit Medical 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.