Correlation Between COLUMBIA SPORTSWEAR and ARDAGH METAL
Can any of the company-specific risk be diversified away by investing in both COLUMBIA SPORTSWEAR and ARDAGH METAL 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 ARDAGH METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COLUMBIA SPORTSWEAR and ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on COLUMBIA SPORTSWEAR and ARDAGH METAL 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 ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of COLUMBIA SPORTSWEAR and ARDAGH METAL.
Diversification Opportunities for COLUMBIA SPORTSWEAR and ARDAGH METAL
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between COLUMBIA and ARDAGH is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding COLUMBIA SPORTSWEAR and ARDAGH METAL PACDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARDAGH METAL PACDL 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 ARDAGH METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARDAGH METAL PACDL has no effect on the direction of COLUMBIA SPORTSWEAR i.e., COLUMBIA SPORTSWEAR and ARDAGH METAL go up and down completely randomly.
Pair Corralation between COLUMBIA SPORTSWEAR and ARDAGH METAL
Assuming the 90 days trading horizon COLUMBIA SPORTSWEAR is expected to generate 0.36 times more return on investment than ARDAGH METAL. However, COLUMBIA SPORTSWEAR is 2.75 times less risky than ARDAGH METAL. It trades about 0.2 of its potential returns per unit of risk. ARDAGH METAL PACDL 0001 is currently generating about -0.21 per unit of risk. If you would invest 8,000 in COLUMBIA SPORTSWEAR on September 24, 2024 and sell it today you would earn a total of 450.00 from holding COLUMBIA SPORTSWEAR or generate 5.63% 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. ARDAGH METAL PACDL 0001
Performance |
| Timeline |
| COLUMBIA SPORTSWEAR |
| ARDAGH METAL PACDL |
COLUMBIA SPORTSWEAR and ARDAGH METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COLUMBIA SPORTSWEAR and ARDAGH METAL
The main advantage of trading using opposite COLUMBIA SPORTSWEAR and ARDAGH METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COLUMBIA SPORTSWEAR position performs unexpectedly, ARDAGH METAL 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 ARDAGH METAL will offset losses from the drop in ARDAGH METAL's long position.| COLUMBIA SPORTSWEAR vs. DICKS Sporting Goods | COLUMBIA SPORTSWEAR vs. FUYO GENERAL LEASE | COLUMBIA SPORTSWEAR vs. Air Lease | COLUMBIA SPORTSWEAR vs. Transportadora de Gas |
| ARDAGH METAL vs. Electronic Arts | ARDAGH METAL vs. BJs Wholesale Club | ARDAGH METAL vs. National Retail Properties | ARDAGH METAL vs. Meiko Electronics Co |
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
| 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 | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |