Correlation Between AES and G III

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

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

Diversification Opportunities for AES and G III

0.0

Correlation Coefficient

AES  G III

Pay attention - limited upside

The 3 months correlation between AES and GI4 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The AES 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 AES 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 The AES 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 AES i.e., AES and G III go up and down completely randomly.

Pair Corralation between AES and G III

If you would invest  2,540  in G III Apparel Group on February 3, 2024 and sell it today you would earn a total of  100.00  from holding G III Apparel Group or generate 3.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

The AES  vs.  G III Apparel Group

AES

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days The AES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AES is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

G III Apparel

Risk-Adjusted Performance

0 of 100

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 comparatively stable basic indicators, G III is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with AES and G III

The main advantage of trading using opposite AES and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AES 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 The AES 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.