Correlation Between Columbia Sportswear and JXJT Old
Can any of the company-specific risk be diversified away by investing in both Columbia Sportswear and JXJT Old 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 Columbia Sportswear and JXJT Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Sportswear and JXJT Old, you can compare the effects of market volatilities on Columbia Sportswear and JXJT Old 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 Columbia Sportswear with a short position of JXJT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Sportswear and JXJT Old.
Diversification Opportunities for Columbia Sportswear and JXJT Old
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Columbia and JXJT is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Sportswear and JXJT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JXJT Old and Columbia Sportswear 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 Columbia Sportswear are associated (or correlated) with JXJT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JXJT Old has no effect on the direction of Columbia Sportswear i.e., Columbia Sportswear and JXJT Old go up and down completely randomly.
Pair Corralation between Columbia Sportswear and JXJT Old
Given the investment horizon of 90 days Columbia Sportswear is expected to generate 0.24 times more return on investment than JXJT Old. However, Columbia Sportswear is 4.16 times less risky than JXJT Old. It trades about 0.14 of its potential returns per unit of risk. JXJT Old is currently generating about -0.21 per unit of risk. If you would invest 8,006 in Columbia Sportswear on November 1, 2024 and sell it today you would earn a total of 1,020 from holding Columbia Sportswear or generate 12.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 58.33% |
| Values | Daily Returns |
Columbia Sportswear vs. JXJT Old
Performance |
| Timeline |
| Columbia Sportswear |
| JXJT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Columbia Sportswear and JXJT Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Sportswear and JXJT Old
The main advantage of trading using opposite Columbia Sportswear and JXJT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Sportswear position performs unexpectedly, JXJT Old 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 JXJT Old will offset losses from the drop in JXJT Old's long position.| Columbia Sportswear vs. Vince Holding Corp | Columbia Sportswear vs. Ermenegildo Zegna NV | Columbia Sportswear vs. Gildan Activewear | Columbia Sportswear vs. G III Apparel Group |
| JXJT Old vs. G III Apparel Group | JXJT Old vs. Lakeland Industries | JXJT Old vs. Oxford Industries | JXJT Old vs. Superior Uniform 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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