Correlation Between Fuquan Capital and G III

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Can any of the company-specific risk be diversified away by investing in both Fuquan Capital 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 Fuquan Capital and G III into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuquan Capital Management and G III Apparel Group, you can compare the effects of market volatilities on Fuquan Capital 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 Fuquan Capital with a short position of G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuquan Capital and G III.

Diversification Opportunities for Fuquan Capital and G III

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Fuquan Capital and G III

If you would invest  2,656  in G III Apparel Group on September 12, 2025 and sell it today you would earn a total of  420.50  from holding G III Apparel Group or generate 15.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

Fuquan Capital Management  vs.  G III Apparel Group

 Performance 
       Timeline  
Fuquan Capital Management 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Fuquan Capital Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Fuquan Capital is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
G III Apparel 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in G III Apparel Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, G III demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Fuquan Capital and G III Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fuquan Capital and G III

The main advantage of trading using opposite Fuquan Capital and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuquan Capital 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 Fuquan Capital Management 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.
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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