Correlation Between COLUMBIA SPORTSWEAR and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both COLUMBIA SPORTSWEAR and Kimco Realty 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 Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COLUMBIA SPORTSWEAR and Kimco Realty, you can compare the effects of market volatilities on COLUMBIA SPORTSWEAR and Kimco Realty 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 Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of COLUMBIA SPORTSWEAR and Kimco Realty.
Diversification Opportunities for COLUMBIA SPORTSWEAR and Kimco Realty
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COLUMBIA and Kimco is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding COLUMBIA SPORTSWEAR and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty 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 Kimco Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimco Realty has no effect on the direction of COLUMBIA SPORTSWEAR i.e., COLUMBIA SPORTSWEAR and Kimco Realty go up and down completely randomly.
Pair Corralation between COLUMBIA SPORTSWEAR and Kimco Realty
Assuming the 90 days trading horizon COLUMBIA SPORTSWEAR is expected to generate 2.31 times less return on investment than Kimco Realty. But when comparing it to its historical volatility, COLUMBIA SPORTSWEAR is 1.12 times less risky than Kimco Realty. It trades about 0.02 of its potential returns per unit of risk. Kimco Realty is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,795 in Kimco Realty on September 12, 2024 and sell it today you would earn a total of 545.00 from holding Kimco Realty or generate 30.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
COLUMBIA SPORTSWEAR vs. Kimco Realty
Performance |
| Timeline |
| COLUMBIA SPORTSWEAR |
| Kimco Realty |
COLUMBIA SPORTSWEAR and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COLUMBIA SPORTSWEAR and Kimco Realty
The main advantage of trading using opposite COLUMBIA SPORTSWEAR and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COLUMBIA SPORTSWEAR position performs unexpectedly, Kimco Realty 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 Kimco Realty will offset losses from the drop in Kimco Realty's long position.| COLUMBIA SPORTSWEAR vs. Apple Inc | COLUMBIA SPORTSWEAR vs. Apple Inc | COLUMBIA SPORTSWEAR vs. Apple Inc | COLUMBIA SPORTSWEAR vs. Apple Inc |
| Kimco Realty vs. Japan Asia Investment | Kimco Realty vs. Warner Music Group | Kimco Realty vs. DIVERSIFIED ROYALTY | Kimco Realty vs. Zoom Video Communications |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |