Correlation Between Naked Brand and Gildan Activewear
Can any of the company-specific risk be diversified away by investing in both Naked Brand and Gildan Activewear 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 Naked Brand and Gildan Activewear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Naked Brand Group and Gildan Activewear, you can compare the effects of market volatilities on Naked Brand and Gildan Activewear 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 Naked Brand with a short position of Gildan Activewear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naked Brand and Gildan Activewear.
Diversification Opportunities for Naked Brand and Gildan Activewear
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Naked and Gildan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Naked Brand Group and Gildan Activewear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gildan Activewear and Naked Brand 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 Naked Brand Group are associated (or correlated) with Gildan Activewear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gildan Activewear has no effect on the direction of Naked Brand i.e., Naked Brand and Gildan Activewear go up and down completely randomly.
Pair Corralation between Naked Brand and Gildan Activewear
If you would invest (100.00) in Naked Brand Group on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Naked Brand Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Naked Brand Group vs. Gildan Activewear
Performance |
| Timeline |
| Naked Brand Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gildan Activewear |
Naked Brand and Gildan Activewear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naked Brand and Gildan Activewear
The main advantage of trading using opposite Naked Brand and Gildan Activewear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naked Brand position performs unexpectedly, Gildan Activewear 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 Gildan Activewear will offset losses from the drop in Gildan Activewear's long position.| Naked Brand vs. CECO Environmental Corp | Naked Brand vs. Summit Hotel Properties | Naked Brand vs. Enersys | Naked Brand vs. Park Hotels Resorts |
| Gildan Activewear vs. Vince Holding Corp | Gildan Activewear vs. Ermenegildo Zegna NV | Gildan Activewear vs. Columbia Sportswear | Gildan Activewear vs. G III Apparel Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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