Correlation Between G III and Triple Flag
Can any of the company-specific risk be diversified away by investing in both G III and Triple Flag 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 Triple Flag 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 Triple Flag Precious, you can compare the effects of market volatilities on G III and Triple Flag 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 Triple Flag. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and Triple Flag.
Diversification Opportunities for G III and Triple Flag
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GIII and Triple is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and Triple Flag Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple Flag Precious 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 Triple Flag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple Flag Precious has no effect on the direction of G III i.e., G III and Triple Flag go up and down completely randomly.
Pair Corralation between G III and Triple Flag
Given the investment horizon of 90 days G III is expected to generate 1.22 times less return on investment than Triple Flag. But when comparing it to its historical volatility, G III Apparel Group is 1.4 times less risky than Triple Flag. It trades about 0.1 of its potential returns per unit of risk. Triple Flag Precious is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,873 in Triple Flag Precious on September 8, 2025 and sell it today you would earn a total of 402.00 from holding Triple Flag Precious or generate 13.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G III Apparel Group vs. Triple Flag Precious
Performance |
| Timeline |
| G III Apparel |
| Triple Flag Precious |
G III and Triple Flag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and Triple Flag
The main advantage of trading using opposite G III and Triple Flag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, Triple Flag 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 Triple Flag will offset losses from the drop in Triple Flag'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 |
| Triple Flag vs. Veolia Environnement SA | Triple Flag vs. Japan Steel Works | Triple Flag vs. Paiute Oil Mining | Triple Flag vs. Brandywine Realty Trust |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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