Correlation Between ALBIS LEASING and Columbia Sportswear
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING 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 ALBIS LEASING and Columbia Sportswear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALBIS LEASING AG and Columbia Sportswear, you can compare the effects of market volatilities on ALBIS LEASING 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 ALBIS LEASING with a short position of Columbia Sportswear. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and Columbia Sportswear.
Diversification Opportunities for ALBIS LEASING and Columbia Sportswear
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between ALBIS and Columbia is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and Columbia Sportswear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Sportswear and ALBIS LEASING 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 ALBIS LEASING AG 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 ALBIS LEASING i.e., ALBIS LEASING and Columbia Sportswear go up and down completely randomly.
Pair Corralation between ALBIS LEASING and Columbia Sportswear
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 1.29 times more return on investment than Columbia Sportswear. However, ALBIS LEASING is 1.29 times more volatile than Columbia Sportswear. It trades about -0.07 of its potential returns per unit of risk. Columbia Sportswear is currently generating about -0.34 per unit of risk. If you would invest 278.00 in ALBIS LEASING AG on October 24, 2024 and sell it today you would lose (4.00) from holding ALBIS LEASING AG or give up 1.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. Columbia Sportswear
Performance |
| Timeline |
| ALBIS LEASING AG |
| Columbia Sportswear |
ALBIS LEASING and Columbia Sportswear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and Columbia Sportswear
The main advantage of trading using opposite ALBIS LEASING and Columbia Sportswear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING 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.| ALBIS LEASING vs. Molson Coors Beverage | ALBIS LEASING vs. Thai Beverage Public | ALBIS LEASING vs. GRUPO CARSO A1 | ALBIS LEASING vs. CarsalesCom |
| Columbia Sportswear vs. Tyson Foods | Columbia Sportswear vs. Tradeweb Markets | Columbia Sportswear vs. AUTO TRADER ADR | Columbia Sportswear vs. ScanSource |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |