Correlation Between COLUMBIA SPORTSWEAR and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both COLUMBIA SPORTSWEAR and GRIFFIN 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 GRIFFIN 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 GRIFFIN MINING LTD, you can compare the effects of market volatilities on COLUMBIA SPORTSWEAR and GRIFFIN 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 GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of COLUMBIA SPORTSWEAR and GRIFFIN MINING.
Diversification Opportunities for COLUMBIA SPORTSWEAR and GRIFFIN MINING
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COLUMBIA and GRIFFIN is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding COLUMBIA SPORTSWEAR and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of COLUMBIA SPORTSWEAR i.e., COLUMBIA SPORTSWEAR and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between COLUMBIA SPORTSWEAR and GRIFFIN MINING
Assuming the 90 days trading horizon COLUMBIA SPORTSWEAR is expected to generate 0.95 times more return on investment than GRIFFIN MINING. However, COLUMBIA SPORTSWEAR is 1.05 times less risky than GRIFFIN MINING. It trades about 0.27 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.02 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 750.00 from holding COLUMBIA SPORTSWEAR or generate 9.68% 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. GRIFFIN MINING LTD
Performance |
| Timeline |
| COLUMBIA SPORTSWEAR |
| GRIFFIN MINING LTD |
COLUMBIA SPORTSWEAR and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COLUMBIA SPORTSWEAR and GRIFFIN MINING
The main advantage of trading using opposite COLUMBIA SPORTSWEAR and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COLUMBIA SPORTSWEAR position performs unexpectedly, GRIFFIN 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING'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 |
| GRIFFIN MINING vs. JD SPORTS FASH | GRIFFIN MINING vs. VIAPLAY GROUP AB | GRIFFIN MINING vs. COLUMBIA SPORTSWEAR | GRIFFIN MINING vs. Gaztransport Technigaz SA |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |