Correlation Between SANOK RUBBER and COLUMBIA SPORTSWEAR
Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER and COLUMBIA SPORTSWEAR 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 SANOK RUBBER and COLUMBIA SPORTSWEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANOK RUBBER ZY and COLUMBIA SPORTSWEAR, you can compare the effects of market volatilities on SANOK RUBBER and COLUMBIA SPORTSWEAR 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 SANOK RUBBER with a short position of COLUMBIA SPORTSWEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and COLUMBIA SPORTSWEAR.
Diversification Opportunities for SANOK RUBBER and COLUMBIA SPORTSWEAR
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between SANOK and COLUMBIA is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and COLUMBIA SPORTSWEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA SPORTSWEAR and SANOK RUBBER 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 SANOK RUBBER ZY are associated (or correlated) with COLUMBIA SPORTSWEAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COLUMBIA SPORTSWEAR has no effect on the direction of SANOK RUBBER i.e., SANOK RUBBER and COLUMBIA SPORTSWEAR go up and down completely randomly.
Pair Corralation between SANOK RUBBER and COLUMBIA SPORTSWEAR
Assuming the 90 days horizon SANOK RUBBER ZY is expected to under-perform the COLUMBIA SPORTSWEAR. But the stock apears to be less risky and, when comparing its historical volatility, SANOK RUBBER ZY is 2.22 times less risky than COLUMBIA SPORTSWEAR. The stock trades about -0.18 of its potential returns per unit of risk. The COLUMBIA SPORTSWEAR is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 6,973 in COLUMBIA SPORTSWEAR on August 27, 2024 and sell it today you would earn a total of 727.00 from holding COLUMBIA SPORTSWEAR or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANOK RUBBER ZY vs. COLUMBIA SPORTSWEAR
Performance |
| Timeline |
| SANOK RUBBER ZY |
| COLUMBIA SPORTSWEAR |
SANOK RUBBER and COLUMBIA SPORTSWEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANOK RUBBER and COLUMBIA SPORTSWEAR
The main advantage of trading using opposite SANOK RUBBER and COLUMBIA SPORTSWEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER position performs unexpectedly, COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR will offset losses from the drop in COLUMBIA SPORTSWEAR's long position.| SANOK RUBBER vs. Superior Plus Corp | SANOK RUBBER vs. NMI Holdings | SANOK RUBBER vs. Origin Agritech | SANOK RUBBER vs. SIVERS SEMICONDUCTORS AB |
| COLUMBIA SPORTSWEAR vs. Ameriprise Financial | COLUMBIA SPORTSWEAR vs. Siamgas And Petrochemicals | COLUMBIA SPORTSWEAR vs. SINGAPORE AIRLINES | COLUMBIA SPORTSWEAR vs. JSC Halyk bank |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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