Correlation Between KONTIGO CARE and COLUMBIA SPORTSWEAR
Can any of the company-specific risk be diversified away by investing in both KONTIGO CARE 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 KONTIGO CARE and COLUMBIA SPORTSWEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KONTIGO CARE AB and COLUMBIA SPORTSWEAR, you can compare the effects of market volatilities on KONTIGO CARE 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 KONTIGO CARE with a short position of COLUMBIA SPORTSWEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of KONTIGO CARE and COLUMBIA SPORTSWEAR.
Diversification Opportunities for KONTIGO CARE and COLUMBIA SPORTSWEAR
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KONTIGO and COLUMBIA is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding KONTIGO CARE AB and COLUMBIA SPORTSWEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA SPORTSWEAR and KONTIGO CARE 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 KONTIGO CARE AB 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 KONTIGO CARE i.e., KONTIGO CARE and COLUMBIA SPORTSWEAR go up and down completely randomly.
Pair Corralation between KONTIGO CARE and COLUMBIA SPORTSWEAR
Assuming the 90 days horizon KONTIGO CARE AB is expected to generate 10.44 times more return on investment than COLUMBIA SPORTSWEAR. However, KONTIGO CARE is 10.44 times more volatile than COLUMBIA SPORTSWEAR. It trades about 0.03 of its potential returns per unit of risk. COLUMBIA SPORTSWEAR is currently generating about -0.4 per unit of risk. If you would invest 19.00 in KONTIGO CARE AB on October 23, 2024 and sell it today you would earn a total of 0.00 from holding KONTIGO CARE AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
KONTIGO CARE AB vs. COLUMBIA SPORTSWEAR
Performance |
| Timeline |
| KONTIGO CARE AB |
| COLUMBIA SPORTSWEAR |
KONTIGO CARE and COLUMBIA SPORTSWEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KONTIGO CARE and COLUMBIA SPORTSWEAR
The main advantage of trading using opposite KONTIGO CARE and COLUMBIA SPORTSWEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KONTIGO CARE 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.| KONTIGO CARE vs. Evolent Health | KONTIGO CARE vs. CompuGroup Medical SE | KONTIGO CARE vs. Compugroup Medical SE | KONTIGO CARE vs. Superior Plus Corp |
| COLUMBIA SPORTSWEAR vs. T MOBILE US | COLUMBIA SPORTSWEAR vs. KENEDIX OFFICE INV | COLUMBIA SPORTSWEAR vs. CITY OFFICE REIT | COLUMBIA SPORTSWEAR vs. Mobilezone Holding AG |
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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