Correlation Between Wynn Resorts and G III

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

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

Diversification Opportunities for Wynn Resorts and G III

0.21

Correlation Coefficient

Wynn Resorts  G III

Modest diversification

The 3 months correlation between Wynn and GI4 is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Wynn Resorts Limited 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 Wynn Resorts 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 Wynn Resorts Limited 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 Wynn Resorts i.e., Wynn Resorts and G III go up and down completely randomly.

Pair Corralation between Wynn Resorts and G III

Assuming the 90 days horizon Wynn Resorts Limited is expected to generate 1.03 times more return on investment than G III. However, Wynn Resorts is 1.03 times more volatile than G III Apparel Group. It trades about -0.05 of its potential returns per unit of risk. G III Apparel Group is currently generating about -0.21 per unit of risk. If you would invest  8,451  in Wynn Resorts Limited on December 20, 2024 and sell it today you would lose (665.00) from holding Wynn Resorts Limited or give up 7.87% of portfolio value over 90 days.

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

Wynn Resorts Limited  vs.  G III Apparel Group

Wynn Resorts Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wynn Resorts Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

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 Wynn Resorts and G III

The main advantage of trading using opposite Wynn Resorts and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wynn Resorts 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 Wynn Resorts Limited 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.