Correlation Between SVENSKA AEROGEL and COLUMBIA SPORTSWEAR
Can any of the company-specific risk be diversified away by investing in both SVENSKA AEROGEL 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 SVENSKA AEROGEL and COLUMBIA SPORTSWEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVENSKA AEROGEL HOLDING and COLUMBIA SPORTSWEAR, you can compare the effects of market volatilities on SVENSKA AEROGEL 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 SVENSKA AEROGEL with a short position of COLUMBIA SPORTSWEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVENSKA AEROGEL and COLUMBIA SPORTSWEAR.
Diversification Opportunities for SVENSKA AEROGEL and COLUMBIA SPORTSWEAR
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SVENSKA and COLUMBIA is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding SVENSKA AEROGEL HOLDING and COLUMBIA SPORTSWEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA SPORTSWEAR and SVENSKA AEROGEL 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 SVENSKA AEROGEL HOLDING 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 SVENSKA AEROGEL i.e., SVENSKA AEROGEL and COLUMBIA SPORTSWEAR go up and down completely randomly.
Pair Corralation between SVENSKA AEROGEL and COLUMBIA SPORTSWEAR
Assuming the 90 days horizon SVENSKA AEROGEL HOLDING is expected to under-perform the COLUMBIA SPORTSWEAR. In addition to that, SVENSKA AEROGEL is 7.86 times more volatile than COLUMBIA SPORTSWEAR. It trades about -0.12 of its total potential returns per unit of risk. COLUMBIA SPORTSWEAR is currently generating about 0.33 per unit of volatility. If you would invest 8,150 in COLUMBIA SPORTSWEAR on November 3, 2024 and sell it today you would earn a total of 550.00 from holding COLUMBIA SPORTSWEAR or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
SVENSKA AEROGEL HOLDING vs. COLUMBIA SPORTSWEAR
Performance |
| Timeline |
| SVENSKA AEROGEL HOLDING |
| COLUMBIA SPORTSWEAR |
SVENSKA AEROGEL and COLUMBIA SPORTSWEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVENSKA AEROGEL and COLUMBIA SPORTSWEAR
The main advantage of trading using opposite SVENSKA AEROGEL and COLUMBIA SPORTSWEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVENSKA AEROGEL 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.| SVENSKA AEROGEL vs. Linde plc | SVENSKA AEROGEL vs. Linde PLC | SVENSKA AEROGEL vs. Air Liquide SA | SVENSKA AEROGEL vs. The Sherwin Williams |
| COLUMBIA SPORTSWEAR vs. betterU Education Corp | COLUMBIA SPORTSWEAR vs. Acadia Healthcare | COLUMBIA SPORTSWEAR vs. CeoTronics AG | COLUMBIA SPORTSWEAR vs. G8 EDUCATION |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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