Correlation Between KINGBOARD CHEMICAL and G-III Apparel

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

Diversification Opportunities for KINGBOARD CHEMICAL and G-III Apparel

-0.82

Correlation Coefficient

KINGBOARD CHEMICAL  G-III Apparel

Pay attention - limited upside

The 3 months correlation between KINGBOARD and G-III is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL i.e., KINGBOARD CHEMICAL and G-III Apparel go up and down completely randomly.

Pair Corralation between KINGBOARD CHEMICAL and G-III Apparel

Assuming the 90 days trading horizon KINGBOARD CHEMICAL is expected to under-perform the G-III Apparel. In addition to that, KINGBOARD CHEMICAL is 1.17 times more volatile than G III Apparel Group. It trades about -0.08 of its total potential returns per unit of risk. G III Apparel Group is currently generating about 0.01 per unit of volatility. If you would invest  2,520  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	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

KINGBOARD CHEMICAL  vs.  G III Apparel Group

KINGBOARD CHEMICAL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KINGBOARD CHEMICAL are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, KINGBOARD CHEMICAL exhibited solid returns over the last few months and may actually be approaching a breakup point.

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 unsteady 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.

Pair Trading with KINGBOARD CHEMICAL and G-III Apparel

The main advantage of trading using opposite KINGBOARD CHEMICAL and G-III Apparel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.