Correlation Between Columbia Sportswear and VIVA WINE
Can any of the company-specific risk be diversified away by investing in both Columbia Sportswear and VIVA WINE 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 VIVA WINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Sportswear and VIVA WINE GROUP, you can compare the effects of market volatilities on Columbia Sportswear and VIVA WINE 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 VIVA WINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Sportswear and VIVA WINE.
Diversification Opportunities for Columbia Sportswear and VIVA WINE
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Columbia and VIVA is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Sportswear and VIVA WINE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIVA WINE GROUP 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 VIVA WINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIVA WINE GROUP has no effect on the direction of Columbia Sportswear i.e., Columbia Sportswear and VIVA WINE go up and down completely randomly.
Pair Corralation between Columbia Sportswear and VIVA WINE
Assuming the 90 days horizon Columbia Sportswear is expected to generate 1.59 times more return on investment than VIVA WINE. However, Columbia Sportswear is 1.59 times more volatile than VIVA WINE GROUP. It trades about 0.39 of its potential returns per unit of risk. VIVA WINE GROUP is currently generating about -0.03 per unit of risk. If you would invest 6,923 in Columbia Sportswear on August 29, 2024 and sell it today you would earn a total of 1,427 from holding Columbia Sportswear or generate 20.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Columbia Sportswear vs. VIVA WINE GROUP
Performance |
| Timeline |
| Columbia Sportswear |
| VIVA WINE GROUP |
Columbia Sportswear and VIVA WINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Sportswear and VIVA WINE
The main advantage of trading using opposite Columbia Sportswear and VIVA WINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Sportswear position performs unexpectedly, VIVA WINE 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 VIVA WINE will offset losses from the drop in VIVA WINE's long position.| Columbia Sportswear vs. Lion One Metals | Columbia Sportswear vs. Addus HomeCare | Columbia Sportswear vs. American Homes 4 | Columbia Sportswear vs. ANGI Homeservices |
| VIVA WINE vs. Corporate Office Properties | VIVA WINE vs. KB HOME | VIVA WINE vs. Tri Pointe Homes | VIVA WINE vs. AUSTEVOLL SEAFOOD |
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.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance |