Correlation Between 493267AK4 and G III

Can any of the company-specific risk be diversified away by investing in both 493267AK4 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 493267AK4 and G III into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KEY 5 and G III Apparel Group, you can compare the effects of market volatilities on 493267AK4 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 493267AK4 with a short position of G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of 493267AK4 and G III.

Diversification Opportunities for 493267AK4 and G III

0.01

Correlation Coefficient

493267AK4  G III

Significant diversification

The 3 months correlation between 493267AK4 and GIII is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding KEY 5 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 493267AK4 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 KEY 5 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 493267AK4 i.e., 493267AK4 and G III go up and down completely randomly.

Pair Corralation between 493267AK4 and G III

Assuming the 90 days trading horizon 493267AK4 is expected to generate 19.41 times less return on investment than G III. But when comparing it to its historical volatility, KEY 5 is 1.3 times less risky than G III. It trades about 0.0 of its potential returns per unit of risk. G III Apparel Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,705  in G III Apparel Group on October 24, 2024 and sell it today you would earn a total of  1,441  from holding G III Apparel Group or generate 84.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.75%
Values	Daily Returns

KEY 5  vs.  G III Apparel Group

493267AK4

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KEY 5 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for KEY 5 investors.

G III Apparel

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in G III Apparel Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, G III is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with 493267AK4 and G III

The main advantage of trading using opposite 493267AK4 and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 493267AK4 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 KEY 5 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.