Correlation Between Chuangs China and COLUMBIA SPORTSWEAR
Can any of the company-specific risk be diversified away by investing in both Chuangs China 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 Chuangs China and COLUMBIA SPORTSWEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuangs China Investments and COLUMBIA SPORTSWEAR, you can compare the effects of market volatilities on Chuangs China 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 Chuangs China with a short position of COLUMBIA SPORTSWEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and COLUMBIA SPORTSWEAR.
Diversification Opportunities for Chuangs China and COLUMBIA SPORTSWEAR
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chuangs and COLUMBIA is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments and COLUMBIA SPORTSWEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA SPORTSWEAR and Chuangs China 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 Chuangs China Investments 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 Chuangs China i.e., Chuangs China and COLUMBIA SPORTSWEAR go up and down completely randomly.
Pair Corralation between Chuangs China and COLUMBIA SPORTSWEAR
If you would invest 6,973 in COLUMBIA SPORTSWEAR on August 27, 2024 and sell it today you would earn a total of 727.00 from holding COLUMBIA SPORTSWEAR or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chuangs China Investments vs. COLUMBIA SPORTSWEAR
Performance |
| Timeline |
| Chuangs China Investments |
| COLUMBIA SPORTSWEAR |
Chuangs China and COLUMBIA SPORTSWEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and COLUMBIA SPORTSWEAR
The main advantage of trading using opposite Chuangs China and COLUMBIA SPORTSWEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China 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.| Chuangs China vs. Superior Plus Corp | Chuangs China vs. NMI Holdings | Chuangs China vs. Origin Agritech | Chuangs China vs. SIVERS SEMICONDUCTORS AB |
| COLUMBIA SPORTSWEAR vs. Ameriprise Financial | COLUMBIA SPORTSWEAR vs. Siamgas And Petrochemicals | COLUMBIA SPORTSWEAR vs. SINGAPORE AIRLINES | COLUMBIA SPORTSWEAR vs. JSC Halyk bank |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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