Correlation Between Tamburi Investment and G III

Can any of the company-specific risk be diversified away by investing in both Tamburi Investment 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 Tamburi Investment and G III into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tamburi Investment Partners and G III Apparel Group, you can compare the effects of market volatilities on Tamburi Investment 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 Tamburi Investment with a short position of G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tamburi Investment and G III.

Diversification Opportunities for Tamburi Investment and G III

0.31

Correlation Coefficient

Tamburi Investment  G III

Weak diversification

The 3 months correlation between Tamburi and GI4 is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Tamburi Investment Partners 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 Tamburi Investment 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 Tamburi Investment Partners 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 Tamburi Investment i.e., Tamburi Investment and G III go up and down completely randomly.

Pair Corralation between Tamburi Investment and G III

Assuming the 90 days horizon Tamburi Investment Partners is expected to generate 0.55 times more return on investment than G III. However, Tamburi Investment Partners is 1.81 times less risky than G III. It trades about -0.01 of its potential returns per unit of risk. G III Apparel Group is currently generating about -0.09 per unit of risk. If you would invest  752.00  in Tamburi Investment Partners on March 28, 2025 and sell it today you would lose (22.00) from holding Tamburi Investment Partners or give up 2.93% of portfolio value over 90 days.

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

Tamburi Investment Partners  vs.  G III Apparel Group

Tamburi Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tamburi Investment Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Tamburi Investment is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

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 fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in July 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Tamburi Investment and G III

The main advantage of trading using opposite Tamburi Investment and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tamburi Investment 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 Tamburi Investment Partners 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.