Correlation Between G III and CCSB Financial
Can any of the company-specific risk be diversified away by investing in both G III and CCSB Financial 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 CCSB Financial 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 CCSB Financial Corp, you can compare the effects of market volatilities on G III and CCSB Financial 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 CCSB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and CCSB Financial.
Diversification Opportunities for G III and CCSB Financial
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between GIII and CCSB is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and CCSB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSB Financial Corp 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 CCSB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSB Financial Corp has no effect on the direction of G III i.e., G III and CCSB Financial go up and down completely randomly.
Pair Corralation between G III and CCSB Financial
Given the investment horizon of 90 days G III Apparel Group is expected to generate 1.28 times more return on investment than CCSB Financial. However, G III is 1.28 times more volatile than CCSB Financial Corp. It trades about 0.04 of its potential returns per unit of risk. CCSB Financial Corp is currently generating about -0.15 per unit of risk. If you would invest 3,095 in G III Apparel Group on October 26, 2024 and sell it today you would earn a total of 84.00 from holding G III Apparel Group or generate 2.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 97.5% |
Values | Daily Returns |
G III Apparel Group vs. CCSB Financial Corp
Performance |
Timeline |
G III Apparel |
CCSB Financial Corp |
G III and CCSB Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G III and CCSB Financial
The main advantage of trading using opposite G III and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, CCSB Financial 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 CCSB Financial will offset losses from the drop in CCSB Financial's long position.G III vs. Oxford Industries | G III vs. Ermenegildo Zegna NV | G III vs. Kontoor Brands | G III vs. Columbia Sportswear |
CCSB Financial vs. CF Industries Holdings | CCSB Financial vs. Intuitive Surgical | CCSB Financial vs. Rocky Brands | CCSB Financial vs. Lincoln Electric Holdings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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