Correlation Between COLUMBIA SPORTSWEAR and KB Financial
Can any of the company-specific risk be diversified away by investing in both COLUMBIA SPORTSWEAR and KB Financial 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 KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COLUMBIA SPORTSWEAR and KB Financial Group, you can compare the effects of market volatilities on COLUMBIA SPORTSWEAR and KB Financial 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 KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of COLUMBIA SPORTSWEAR and KB Financial.
Diversification Opportunities for COLUMBIA SPORTSWEAR and KB Financial
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between COLUMBIA and KBIA is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding COLUMBIA SPORTSWEAR and KB Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB Financial 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 KB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB Financial Group has no effect on the direction of COLUMBIA SPORTSWEAR i.e., COLUMBIA SPORTSWEAR and KB Financial go up and down completely randomly.
Pair Corralation between COLUMBIA SPORTSWEAR and KB Financial
Assuming the 90 days trading horizon COLUMBIA SPORTSWEAR is expected to generate 0.54 times more return on investment than KB Financial. However, COLUMBIA SPORTSWEAR is 1.84 times less risky than KB Financial. It trades about 0.19 of its potential returns per unit of risk. KB Financial Group is currently generating about -0.09 per unit of risk. If you would invest 7,969 in COLUMBIA SPORTSWEAR on September 16, 2024 and sell it today you would earn a total of 531.00 from holding COLUMBIA SPORTSWEAR or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COLUMBIA SPORTSWEAR vs. KB Financial Group
Performance |
| Timeline |
| COLUMBIA SPORTSWEAR |
| KB Financial Group |
COLUMBIA SPORTSWEAR and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COLUMBIA SPORTSWEAR and KB Financial
The main advantage of trading using opposite COLUMBIA SPORTSWEAR and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COLUMBIA SPORTSWEAR position performs unexpectedly, KB Financial 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 KB Financial will offset losses from the drop in KB Financial's long position.| COLUMBIA SPORTSWEAR vs. Wyndham Hotels Resorts | COLUMBIA SPORTSWEAR vs. OURGAME INTHOLDL 00005 | COLUMBIA SPORTSWEAR vs. CI GAMES SA | COLUMBIA SPORTSWEAR vs. MCEWEN MINING INC |
| KB Financial vs. JJ SNACK FOODS | KB Financial vs. Casio Computer CoLtd | KB Financial vs. PLANT VEDA FOODS | KB Financial vs. National 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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