Correlation Between VOXX International and G III
Can any of the company-specific risk be diversified away by investing in both VOXX International 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 VOXX International and G III into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VOXX International and G III Apparel Group, you can compare the effects of market volatilities on VOXX International 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 VOXX International with a short position of G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of VOXX International and G III.
Diversification Opportunities for VOXX International and G III
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VOXX and GIII is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding VOXX International 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 VOXX International 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 VOXX International 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 VOXX International i.e., VOXX International and G III go up and down completely randomly.
Pair Corralation between VOXX International and G III
Given the investment horizon of 90 days VOXX International is expected to under-perform the G III. In addition to that, VOXX International is 2.1 times more volatile than G III Apparel Group. It trades about -0.39 of its total potential returns per unit of risk. G III Apparel Group is currently generating about 0.05 per unit of volatility. If you would invest 2,816 in G III Apparel Group on February 5, 2024 and sell it today you would earn a total of 43.00 from holding G III Apparel Group or generate 1.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
VOXX International vs. G III Apparel Group
Performance |
Timeline |
VOXX International |
G III Apparel |
VOXX International and G III Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VOXX International and G III
The main advantage of trading using opposite VOXX International and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VOXX International 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.VOXX International vs. LG Display Co | VOXX International vs. Vizio Holding Corp | VOXX International vs. Turtle Beach Corp | VOXX International vs. Emerson Radio |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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