Correlation Between G-III APPAREL and Shenandoah Telecommunicatio

Can any of the company-specific risk be diversified away by investing in both G-III APPAREL and Shenandoah Telecommunicatio 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 APPAREL and Shenandoah Telecommunicatio 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 Shenandoah Telecommunications, you can compare the effects of market volatilities on G-III APPAREL and Shenandoah Telecommunicatio 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 APPAREL with a short position of Shenandoah Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of G-III APPAREL and Shenandoah Telecommunicatio.

Diversification Opportunities for G-III APPAREL and Shenandoah Telecommunicatio

-0.77

Correlation Coefficient

G-III APPAREL  Shenandoah Telecommunicatio

Pay attention - limited upside

The 3 months correlation between G-III and Shenandoah is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding G III APPAREL GROUP and Shenandoah Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenandoah Telecommunicatio and G-III APPAREL 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 Shenandoah Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenandoah Telecommunicatio has no effect on the direction of G-III APPAREL i.e., G-III APPAREL and Shenandoah Telecommunicatio go up and down completely randomly.

Pair Corralation between G-III APPAREL and Shenandoah Telecommunicatio

Assuming the 90 days trading horizon G III APPAREL GROUP is expected to under-perform the Shenandoah Telecommunicatio. In addition to that, G-III APPAREL is 1.14 times more volatile than Shenandoah Telecommunications. It trades about -0.04 of its total potential returns per unit of risk. Shenandoah Telecommunications is currently generating about 0.11 per unit of volatility. If you would invest  1,120  in Shenandoah Telecommunications on April 25, 2025 and sell it today you would earn a total of  200.00  from holding Shenandoah Telecommunications or generate 17.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

G III APPAREL GROUP  vs.  Shenandoah Telecommunications

G III APPAREL

Risk-Adjusted Performance

Very Weak

Over the last 90 days G III APPAREL GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Shenandoah Telecommunicatio

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Shenandoah Telecommunications are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Shenandoah Telecommunicatio reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with G-III APPAREL and Shenandoah Telecommunicatio

The main advantage of trading using opposite G-III APPAREL and Shenandoah Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G-III APPAREL position performs unexpectedly, Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio will offset losses from the drop in Shenandoah Telecommunicatio's long position.

The idea behind G III APPAREL GROUP and Shenandoah Telecommunications 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.

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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.