Correlation Between PVH Corp and G III

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

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

Diversification Opportunities for PVH Corp and G III

0.93

Correlation Coefficient

PVH Corp  G III

Almost no diversification

The 3 months correlation between PVH and GIII is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding PVH Corp 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 PVH Corp 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 PVH Corp are associated (or correlated) with G III. 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 PVH Corp i.e., PVH Corp and G III go up and down completely randomly.

Pair Corralation between PVH Corp and G III

Considering the 90-day investment horizon PVH Corp is expected to under-perform the G III. In addition to that, PVH Corp is 1.15 times more volatile than G III Apparel Group. It trades about -0.31 of its total potential returns per unit of risk. G III Apparel Group is currently generating about -0.14 per unit of volatility. If you would invest  3,314  in G III Apparel Group on December 26, 2024 and sell it today you would lose (603.00) from holding G III Apparel Group or give up 18.2% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

PVH Corp  vs.  G III Apparel Group

PVH Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days PVH Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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. Despite unfluctuating performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with PVH Corp and G III

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

The idea behind PVH Corp 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..