Correlation Between Columbia Sportswear and INTER CARS
Can any of the company-specific risk be diversified away by investing in both Columbia Sportswear and INTER CARS 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 INTER CARS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Sportswear and INTER CARS SA, you can compare the effects of market volatilities on Columbia Sportswear and INTER CARS 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 INTER CARS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Sportswear and INTER CARS.
Diversification Opportunities for Columbia Sportswear and INTER CARS
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Columbia and INTER is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Sportswear and INTER CARS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTER CARS SA 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 INTER CARS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTER CARS SA has no effect on the direction of Columbia Sportswear i.e., Columbia Sportswear and INTER CARS go up and down completely randomly.
Pair Corralation between Columbia Sportswear and INTER CARS
Assuming the 90 days horizon Columbia Sportswear is expected to generate 0.9 times more return on investment than INTER CARS. However, Columbia Sportswear is 1.11 times less risky than INTER CARS. It trades about 0.03 of its potential returns per unit of risk. INTER CARS SA is currently generating about -0.02 per unit of risk. If you would invest 7,037 in Columbia Sportswear on August 27, 2024 and sell it today you would earn a total of 663.00 from holding Columbia Sportswear or generate 9.42% 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. INTER CARS SA
Performance |
| Timeline |
| Columbia Sportswear |
| INTER CARS SA |
Columbia Sportswear and INTER CARS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Sportswear and INTER CARS
The main advantage of trading using opposite Columbia Sportswear and INTER CARS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Sportswear position performs unexpectedly, INTER CARS 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 INTER CARS will offset losses from the drop in INTER CARS's long position.| Columbia Sportswear vs. H M Hennes | Columbia Sportswear vs. Moncler SpA | Columbia Sportswear vs. Capri Holdings Limited | Columbia Sportswear vs. Gildan Activewear |
| INTER CARS vs. Superior Plus Corp | INTER CARS vs. NMI Holdings | INTER CARS vs. Origin Agritech | INTER CARS vs. SIVERS SEMICONDUCTORS AB |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |