Correlation Between Columbia Sportswear and QINGCI GAMES
Can any of the company-specific risk be diversified away by investing in both Columbia Sportswear and QINGCI GAMES 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 QINGCI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Sportswear and QINGCI GAMES INC, you can compare the effects of market volatilities on Columbia Sportswear and QINGCI GAMES 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 QINGCI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Sportswear and QINGCI GAMES.
Diversification Opportunities for Columbia Sportswear and QINGCI GAMES
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Columbia and QINGCI is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Sportswear and QINGCI GAMES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QINGCI GAMES INC 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 QINGCI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QINGCI GAMES INC has no effect on the direction of Columbia Sportswear i.e., Columbia Sportswear and QINGCI GAMES go up and down completely randomly.
Pair Corralation between Columbia Sportswear and QINGCI GAMES
Assuming the 90 days horizon Columbia Sportswear is expected to generate 0.6 times more return on investment than QINGCI GAMES. However, Columbia Sportswear is 1.67 times less risky than QINGCI GAMES. It trades about 0.12 of its potential returns per unit of risk. QINGCI GAMES INC is currently generating about -0.02 per unit of risk. If you would invest 7,222 in Columbia Sportswear on September 2, 2024 and sell it today you would earn a total of 978.00 from holding Columbia Sportswear or generate 13.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Sportswear vs. QINGCI GAMES INC
Performance |
| Timeline |
| Columbia Sportswear |
| QINGCI GAMES INC |
Columbia Sportswear and QINGCI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Sportswear and QINGCI GAMES
The main advantage of trading using opposite Columbia Sportswear and QINGCI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Sportswear position performs unexpectedly, QINGCI GAMES 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 QINGCI GAMES will offset losses from the drop in QINGCI GAMES's long position.| Columbia Sportswear vs. Ralph Lauren | Columbia Sportswear vs. Superior Plus Corp | Columbia Sportswear vs. NMI Holdings | Columbia Sportswear vs. Origin Agritech |
| QINGCI GAMES vs. Nintendo Co | QINGCI GAMES vs. Sea Limited | QINGCI GAMES vs. Superior Plus Corp | QINGCI GAMES vs. NMI Holdings |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stocks Directory Find actively traded stocks across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |