Correlation Between Jerash Holdings and G III
Can any of the company-specific risk be diversified away by investing in both Jerash Holdings 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 Jerash Holdings and G III into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jerash Holdings and G III Apparel Group, you can compare the effects of market volatilities on Jerash Holdings 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 Jerash Holdings with a short position of G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jerash Holdings and G III.
Diversification Opportunities for Jerash Holdings and G III
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jerash and GIII is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jerash Holdings 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 Jerash Holdings 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 Jerash Holdings 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 Jerash Holdings i.e., Jerash Holdings and G III go up and down completely randomly.
Pair Corralation between Jerash Holdings and G III
Given the investment horizon of 90 days Jerash Holdings is expected to generate 12.47 times less return on investment than G III. But when comparing it to its historical volatility, Jerash Holdings is 1.6 times less risky than G III. It trades about 0.01 of its potential returns per unit of risk. G III Apparel Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,457 in G III Apparel Group on January 25, 2024 and sell it today you would earn a total of 438.00 from holding G III Apparel Group or generate 17.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jerash Holdings vs. G III Apparel Group
Performance |
| Timeline |
| Jerash Holdings |
| G III Apparel |
Jerash Holdings and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jerash Holdings and G III
The main advantage of trading using opposite Jerash Holdings and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jerash Holdings 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.| Jerash Holdings vs. Vince Holding Corp | Jerash Holdings vs. Oxford Industries | Jerash Holdings vs. Gildan Activewear | Jerash Holdings vs. Columbia Sportswear |
| G III vs. Oxford Industries | G III vs. Ermenegildo Zegna NV | G III vs. Kontoor Brands | G III vs. Columbia Sportswear |
Check out your portfolio center.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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |