Correlation Between COLUMBIA SPORTSWEAR and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both COLUMBIA SPORTSWEAR and Zijin Mining 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 Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COLUMBIA SPORTSWEAR and Zijin Mining Group, you can compare the effects of market volatilities on COLUMBIA SPORTSWEAR and Zijin Mining 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 Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of COLUMBIA SPORTSWEAR and Zijin Mining.
Diversification Opportunities for COLUMBIA SPORTSWEAR and Zijin Mining
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between COLUMBIA and Zijin is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding COLUMBIA SPORTSWEAR and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining 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 Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of COLUMBIA SPORTSWEAR i.e., COLUMBIA SPORTSWEAR and Zijin Mining go up and down completely randomly.
Pair Corralation between COLUMBIA SPORTSWEAR and Zijin Mining
Assuming the 90 days trading horizon COLUMBIA SPORTSWEAR is expected to generate 0.34 times more return on investment than Zijin Mining. However, COLUMBIA SPORTSWEAR is 2.98 times less risky than Zijin Mining. It trades about 0.21 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.02 per unit of risk. If you would invest 8,200 in COLUMBIA SPORTSWEAR on October 30, 2024 and sell it today you would earn a total of 300.00 from holding COLUMBIA SPORTSWEAR or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COLUMBIA SPORTSWEAR vs. Zijin Mining Group
Performance |
| Timeline |
| COLUMBIA SPORTSWEAR |
| Zijin Mining Group |
COLUMBIA SPORTSWEAR and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COLUMBIA SPORTSWEAR and Zijin Mining
The main advantage of trading using opposite COLUMBIA SPORTSWEAR and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COLUMBIA SPORTSWEAR position performs unexpectedly, Zijin Mining 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 Zijin Mining will offset losses from the drop in Zijin Mining's long position.| COLUMBIA SPORTSWEAR vs. HK Electric Investments | COLUMBIA SPORTSWEAR vs. China Eastern Airlines | COLUMBIA SPORTSWEAR vs. Aegean Airlines SA | COLUMBIA SPORTSWEAR vs. REINET INVESTMENTS SCA |
| Zijin Mining vs. United Breweries Co | Zijin Mining vs. National Beverage Corp | Zijin Mining vs. Dairy Farm International | Zijin Mining vs. Hanison Construction 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |