Correlation Between COLUMBIA SPORTSWEAR and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both COLUMBIA SPORTSWEAR and GALENA 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 GALENA 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 GALENA MINING LTD, you can compare the effects of market volatilities on COLUMBIA SPORTSWEAR and GALENA 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 GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of COLUMBIA SPORTSWEAR and GALENA MINING.
Diversification Opportunities for COLUMBIA SPORTSWEAR and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COLUMBIA and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding COLUMBIA SPORTSWEAR and GALENA MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GALENA 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 GALENA MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GALENA MINING LTD has no effect on the direction of COLUMBIA SPORTSWEAR i.e., COLUMBIA SPORTSWEAR and GALENA MINING go up and down completely randomly.
Pair Corralation between COLUMBIA SPORTSWEAR and GALENA MINING
If you would invest 7,272 in COLUMBIA SPORTSWEAR on August 25, 2024 and sell it today you would earn a total of 428.00 from holding COLUMBIA SPORTSWEAR or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.78% |
| Values | Daily Returns |
COLUMBIA SPORTSWEAR vs. GALENA MINING LTD
Performance |
| Timeline |
| COLUMBIA SPORTSWEAR |
| GALENA MINING LTD |
COLUMBIA SPORTSWEAR and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COLUMBIA SPORTSWEAR and GALENA MINING
The main advantage of trading using opposite COLUMBIA SPORTSWEAR and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COLUMBIA SPORTSWEAR position performs unexpectedly, GALENA 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 GALENA MINING will offset losses from the drop in GALENA MINING's long position.The idea behind COLUMBIA SPORTSWEAR and GALENA MINING LTD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Valuation module to check real value of public entities based on technical and fundamental data.
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