Correlation Between Columbia Sportswear and CHINA VANKE
Can any of the company-specific risk be diversified away by investing in both Columbia Sportswear and CHINA VANKE 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 CHINA VANKE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Sportswear and CHINA VANKE TD, you can compare the effects of market volatilities on Columbia Sportswear and CHINA VANKE 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 CHINA VANKE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Sportswear and CHINA VANKE.
Diversification Opportunities for Columbia Sportswear and CHINA VANKE
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Columbia and CHINA is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Sportswear and CHINA VANKE TD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA VANKE TD 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 CHINA VANKE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA VANKE TD has no effect on the direction of Columbia Sportswear i.e., Columbia Sportswear and CHINA VANKE go up and down completely randomly.
Pair Corralation between Columbia Sportswear and CHINA VANKE
Assuming the 90 days horizon Columbia Sportswear is expected to generate 0.61 times more return on investment than CHINA VANKE. However, Columbia Sportswear is 1.63 times less risky than CHINA VANKE. It trades about 0.24 of its potential returns per unit of risk. CHINA VANKE TD is currently generating about -0.09 per unit of risk. If you would invest 7,770 in Columbia Sportswear on September 14, 2024 and sell it today you would earn a total of 730.00 from holding Columbia Sportswear or generate 9.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Sportswear vs. CHINA VANKE TD
Performance |
| Timeline |
| Columbia Sportswear |
| CHINA VANKE TD |
Columbia Sportswear and CHINA VANKE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Sportswear and CHINA VANKE
The main advantage of trading using opposite Columbia Sportswear and CHINA VANKE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Sportswear position performs unexpectedly, CHINA VANKE 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 CHINA VANKE will offset losses from the drop in CHINA VANKE's long position.| Columbia Sportswear vs. Tencent Music Entertainment | Columbia Sportswear vs. SCANDMEDICAL SOLDK 040 | Columbia Sportswear vs. CITY OFFICE REIT | Columbia Sportswear vs. UNIVERSAL MUSIC GROUP |
| CHINA VANKE vs. PennantPark Investment | CHINA VANKE vs. REGAL ASIAN INVESTMENTS | CHINA VANKE vs. CDL INVESTMENT | CHINA VANKE vs. DIVERSIFIED ROYALTY |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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