Correlation Between Columbia Sportswear and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Columbia Sportswear and ANTA SPORTS 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 ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Sportswear and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Columbia Sportswear and ANTA SPORTS 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 ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Sportswear and ANTA SPORTS.
Diversification Opportunities for Columbia Sportswear and ANTA SPORTS
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Columbia and ANTA is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Sportswear and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT 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 ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of Columbia Sportswear i.e., Columbia Sportswear and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Columbia Sportswear and ANTA SPORTS
Assuming the 90 days horizon Columbia Sportswear is expected to generate 0.93 times more return on investment than ANTA SPORTS. However, Columbia Sportswear is 1.07 times less risky than ANTA SPORTS. It trades about 0.13 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.12 per unit of risk. If you would invest 7,172 in Columbia Sportswear on August 25, 2024 and sell it today you would earn a total of 378.00 from holding Columbia Sportswear or generate 5.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Columbia Sportswear vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Columbia Sportswear |
| ANTA SPORTS PRODUCT |
Columbia Sportswear and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Sportswear and ANTA SPORTS
The main advantage of trading using opposite Columbia Sportswear and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Sportswear position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS'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 |
| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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