Correlation Between G III and MT Bank
Can any of the company-specific risk be diversified away by investing in both G III and MT Bank 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 G III and MT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G III Apparel Group and MT Bank, you can compare the effects of market volatilities on G III and MT Bank 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 G III with a short position of MT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and MT Bank.
Diversification Opportunities for G III and MT Bank
Good diversification
The 3 months correlation between GIII and MTB is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and MT Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MT Bank and G III 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 G III Apparel Group are associated (or correlated) with MT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MT Bank has no effect on the direction of G III i.e., G III and MT Bank go up and down completely randomly.
Pair Corralation between G III and MT Bank
Given the investment horizon of 90 days G III Apparel Group is expected to generate 1.46 times more return on investment than MT Bank. However, G III is 1.46 times more volatile than MT Bank. It trades about 0.1 of its potential returns per unit of risk. MT Bank is currently generating about -0.01 per unit of risk. If you would invest 2,708 in G III Apparel Group on September 8, 2025 and sell it today you would earn a total of 330.00 from holding G III Apparel Group or generate 12.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G III Apparel Group vs. MT Bank
Performance |
| Timeline |
| G III Apparel |
| MT Bank |
G III and MT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and MT Bank
The main advantage of trading using opposite G III and MT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, MT Bank 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 MT Bank will offset losses from the drop in MT Bank's long position.| G III vs. Academy Sports Outdoors | G III vs. Japan Display ADR | G III vs. American Eagle Outfitters | G III vs. LG Display Co |
| MT Bank vs. Eastman Chemical | MT Bank vs. NETCLASS TECHNOLOGY INC | MT Bank vs. ISE Chemicals | MT Bank vs. Westlake Chemical Partners |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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