Correlation Between Columbia Sportswear and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Columbia Sportswear and Amkor Technology 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 Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Sportswear and Amkor Technology, you can compare the effects of market volatilities on Columbia Sportswear and Amkor Technology 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 Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Sportswear and Amkor Technology.
Diversification Opportunities for Columbia Sportswear and Amkor Technology
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Columbia and Amkor is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Sportswear and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology 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 Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of Columbia Sportswear i.e., Columbia Sportswear and Amkor Technology go up and down completely randomly.
Pair Corralation between Columbia Sportswear and Amkor Technology
Assuming the 90 days horizon Columbia Sportswear is expected to generate 0.77 times more return on investment than Amkor Technology. However, Columbia Sportswear is 1.29 times less risky than Amkor Technology. It trades about 0.19 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.12 per unit of risk. If you would invest 7,272 in Columbia Sportswear on September 23, 2024 and sell it today you would earn a total of 1,128 from holding Columbia Sportswear or generate 15.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Sportswear vs. Amkor Technology
Performance |
| Timeline |
| Columbia Sportswear |
| Amkor Technology |
Columbia Sportswear and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Sportswear and Amkor Technology
The main advantage of trading using opposite Columbia Sportswear and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Sportswear position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| Columbia Sportswear vs. HM HENMAUUNSPADR 15 | Columbia Sportswear vs. H M Hennes | Columbia Sportswear vs. H M Hennes | Columbia Sportswear vs. Moncler SpA |
| Amkor Technology vs. AGRICULTBK HADR25 YC | Amkor Technology vs. CDL INVESTMENT | Amkor Technology vs. Virtus Investment Partners | Amkor Technology vs. WisdomTree Investments |
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.
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