Correlation Between COLUMBIA SPORTSWEAR and MHP Hotel
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By analyzing existing cross correlation between COLUMBIA SPORTSWEAR and MHP Hotel AG, you can compare the effects of market volatilities on COLUMBIA SPORTSWEAR and MHP Hotel 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 MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of COLUMBIA SPORTSWEAR and MHP Hotel.
Diversification Opportunities for COLUMBIA SPORTSWEAR and MHP Hotel
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COLUMBIA and MHP is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding COLUMBIA SPORTSWEAR and MHP Hotel AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MHP Hotel AG 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 MHP Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MHP Hotel AG has no effect on the direction of COLUMBIA SPORTSWEAR i.e., COLUMBIA SPORTSWEAR and MHP Hotel go up and down completely randomly.
Pair Corralation between COLUMBIA SPORTSWEAR and MHP Hotel
Assuming the 90 days trading horizon COLUMBIA SPORTSWEAR is expected to generate 0.47 times more return on investment than MHP Hotel. However, COLUMBIA SPORTSWEAR is 2.13 times less risky than MHP Hotel. It trades about 0.25 of its potential returns per unit of risk. MHP Hotel AG is currently generating about 0.06 per unit of risk. If you would invest 7,750 in COLUMBIA SPORTSWEAR on September 21, 2024 and sell it today you would earn a total of 700.00 from holding COLUMBIA SPORTSWEAR or generate 9.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
COLUMBIA SPORTSWEAR vs. MHP Hotel AG
Performance |
| Timeline |
| COLUMBIA SPORTSWEAR |
| MHP Hotel AG |
COLUMBIA SPORTSWEAR and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COLUMBIA SPORTSWEAR and MHP Hotel
The main advantage of trading using opposite COLUMBIA SPORTSWEAR and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COLUMBIA SPORTSWEAR position performs unexpectedly, MHP Hotel 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 MHP Hotel will offset losses from the drop in MHP Hotel's long position.| COLUMBIA SPORTSWEAR vs. Microbot Medical | COLUMBIA SPORTSWEAR vs. ATOSS SOFTWARE | COLUMBIA SPORTSWEAR vs. AXWAY SOFTWARE EO | COLUMBIA SPORTSWEAR vs. IMAGIN MEDICAL INC |
| MHP Hotel vs. COLUMBIA SPORTSWEAR | MHP Hotel vs. Thai Beverage Public | MHP Hotel vs. USWE SPORTS AB | MHP Hotel vs. Monster Beverage Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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