Correlation Between MOVIE GAMES and COLUMBIA SPORTSWEAR
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES 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 MOVIE GAMES and COLUMBIA SPORTSWEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOVIE GAMES SA and COLUMBIA SPORTSWEAR, you can compare the effects of market volatilities on MOVIE GAMES 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 MOVIE GAMES with a short position of COLUMBIA SPORTSWEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and COLUMBIA SPORTSWEAR.
Diversification Opportunities for MOVIE GAMES and COLUMBIA SPORTSWEAR
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MOVIE and COLUMBIA is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and COLUMBIA SPORTSWEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA SPORTSWEAR and MOVIE GAMES 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 MOVIE GAMES SA 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 MOVIE GAMES i.e., MOVIE GAMES and COLUMBIA SPORTSWEAR go up and down completely randomly.
Pair Corralation between MOVIE GAMES and COLUMBIA SPORTSWEAR
Assuming the 90 days horizon MOVIE GAMES SA is expected to generate 5.37 times more return on investment than COLUMBIA SPORTSWEAR. However, MOVIE GAMES is 5.37 times more volatile than COLUMBIA SPORTSWEAR. It trades about 0.16 of its potential returns per unit of risk. COLUMBIA SPORTSWEAR is currently generating about 0.42 per unit of risk. If you would invest 366.00 in MOVIE GAMES SA on November 4, 2024 and sell it today you would earn a total of 54.00 from holding MOVIE GAMES SA or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
MOVIE GAMES SA vs. COLUMBIA SPORTSWEAR
Performance |
| Timeline |
| MOVIE GAMES SA |
| COLUMBIA SPORTSWEAR |
MOVIE GAMES and COLUMBIA SPORTSWEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and COLUMBIA SPORTSWEAR
The main advantage of trading using opposite MOVIE GAMES and COLUMBIA SPORTSWEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES 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.| MOVIE GAMES vs. MICRONIC MYDATA | MOVIE GAMES vs. Information Services International Dentsu | MOVIE GAMES vs. Apollo Investment Corp | MOVIE GAMES vs. TERADATA |
| COLUMBIA SPORTSWEAR vs. Highlight Communications AG | COLUMBIA SPORTSWEAR vs. Ribbon Communications | COLUMBIA SPORTSWEAR vs. Cairo Communication SpA | COLUMBIA SPORTSWEAR vs. DISTRICT METALS |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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