Correlation Between Xiwang Special and Columbia Sportswear
Can any of the company-specific risk be diversified away by investing in both Xiwang Special 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 Xiwang Special and Columbia Sportswear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xiwang Special Steel and Columbia Sportswear, you can compare the effects of market volatilities on Xiwang Special 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 Xiwang Special with a short position of Columbia Sportswear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Special and Columbia Sportswear.
Diversification Opportunities for Xiwang Special and Columbia Sportswear
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xiwang and Columbia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Special Steel and Columbia Sportswear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Sportswear and Xiwang Special 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 Xiwang Special Steel 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 Xiwang Special i.e., Xiwang Special and Columbia Sportswear go up and down completely randomly.
Pair Corralation between Xiwang Special and Columbia Sportswear
Assuming the 90 days horizon Xiwang Special Steel is expected to generate 58.59 times more return on investment than Columbia Sportswear. However, Xiwang Special is 58.59 times more volatile than Columbia Sportswear. It trades about 0.09 of its potential returns per unit of risk. Columbia Sportswear is currently generating about 0.01 per unit of risk. If you would invest 1.17 in Xiwang Special Steel on October 11, 2024 and sell it today you would lose (1.16) from holding Xiwang Special Steel or give up 99.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Xiwang Special Steel vs. Columbia Sportswear
Performance |
| Timeline |
| Xiwang Special Steel |
| Columbia Sportswear |
Xiwang Special and Columbia Sportswear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Special and Columbia Sportswear
The main advantage of trading using opposite Xiwang Special and Columbia Sportswear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Special 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.| Xiwang Special vs. PennantPark Investment | Xiwang Special vs. DATATEC LTD 2 | Xiwang Special vs. Hyrican Informationssysteme Aktiengesellschaft | Xiwang Special vs. Information Services International Dentsu |
| Columbia Sportswear vs. CALTAGIRONE EDITORE | Columbia Sportswear vs. MARKET VECTR RETAIL | Columbia Sportswear vs. Xiwang Special Steel | Columbia Sportswear vs. RETAIL FOOD GROUP |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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