Correlation Between Columbia Sportswear and JX Luxventure
Can any of the company-specific risk be diversified away by investing in both Columbia Sportswear and JX Luxventure 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 JX Luxventure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Sportswear and JX Luxventure Limited, you can compare the effects of market volatilities on Columbia Sportswear and JX Luxventure 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 JX Luxventure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Sportswear and JX Luxventure.
Diversification Opportunities for Columbia Sportswear and JX Luxventure
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Columbia and JXJT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Sportswear and JX Luxventure Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JX Luxventure Limited 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 JX Luxventure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JX Luxventure Limited has no effect on the direction of Columbia Sportswear i.e., Columbia Sportswear and JX Luxventure go up and down completely randomly.
Pair Corralation between Columbia Sportswear and JX Luxventure
Given the investment horizon of 90 days Columbia Sportswear is expected to generate 0.25 times more return on investment than JX Luxventure. However, Columbia Sportswear is 3.97 times less risky than JX Luxventure. It trades about 0.23 of its potential returns per unit of risk. JX Luxventure Limited is currently generating about -0.06 per unit of risk. If you would invest 7,650 in Columbia Sportswear on August 25, 2024 and sell it today you would earn a total of 698.00 from holding Columbia Sportswear or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Sportswear vs. JX Luxventure Limited
Performance |
| Timeline |
| Columbia Sportswear |
| JX Luxventure Limited |
Columbia Sportswear and JX Luxventure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Sportswear and JX Luxventure
The main advantage of trading using opposite Columbia Sportswear and JX Luxventure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Sportswear position performs unexpectedly, JX Luxventure 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 JX Luxventure will offset losses from the drop in JX Luxventure'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 |
| JX Luxventure vs. G III Apparel Group | JX Luxventure vs. Lakeland Industries | JX Luxventure vs. Oxford Industries | JX Luxventure 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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