Correlation Between Columbia Sportswear and AM EAGLE
Can any of the company-specific risk be diversified away by investing in both Columbia Sportswear and AM EAGLE 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 AM EAGLE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Sportswear and AM EAGLE OUTFITTERS, you can compare the effects of market volatilities on Columbia Sportswear and AM EAGLE 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 AM EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Sportswear and AM EAGLE.
Diversification Opportunities for Columbia Sportswear and AM EAGLE
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Columbia and AFG is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Sportswear and AM EAGLE OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AM EAGLE OUTFITTERS 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 AM EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AM EAGLE OUTFITTERS has no effect on the direction of Columbia Sportswear i.e., Columbia Sportswear and AM EAGLE go up and down completely randomly.
Pair Corralation between Columbia Sportswear and AM EAGLE
Assuming the 90 days horizon Columbia Sportswear is expected to generate 0.72 times more return on investment than AM EAGLE. However, Columbia Sportswear is 1.4 times less risky than AM EAGLE. It trades about 0.03 of its potential returns per unit of risk. AM EAGLE OUTFITTERS is currently generating about -0.02 per unit of risk. If you would invest 7,787 in Columbia Sportswear on September 1, 2024 and sell it today you would earn a total of 413.00 from holding Columbia Sportswear or generate 5.3% 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. AM EAGLE OUTFITTERS
Performance |
| Timeline |
| Columbia Sportswear |
| AM EAGLE OUTFITTERS |
Columbia Sportswear and AM EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Sportswear and AM EAGLE
The main advantage of trading using opposite Columbia Sportswear and AM EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Sportswear position performs unexpectedly, AM EAGLE 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 AM EAGLE will offset losses from the drop in AM EAGLE's long position.| Columbia Sportswear vs. Ralph Lauren | Columbia Sportswear vs. Superior Plus Corp | Columbia Sportswear vs. NMI Holdings | Columbia Sportswear vs. Origin Agritech |
| AM EAGLE vs. AVITA Medical | AM EAGLE vs. EAT WELL INVESTMENT | AM EAGLE vs. Diamyd Medical AB | AM EAGLE vs. CompuGroup Medical SE |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |