Correlation Between COLUMBIA SPORTSWEAR and MOLSON COORS
Can any of the company-specific risk be diversified away by investing in both COLUMBIA SPORTSWEAR and MOLSON COORS 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 MOLSON COORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COLUMBIA SPORTSWEAR and MOLSON RS BEVERAGE, you can compare the effects of market volatilities on COLUMBIA SPORTSWEAR and MOLSON COORS 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 MOLSON COORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of COLUMBIA SPORTSWEAR and MOLSON COORS.
Diversification Opportunities for COLUMBIA SPORTSWEAR and MOLSON COORS
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COLUMBIA and MOLSON is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding COLUMBIA SPORTSWEAR and MOLSON RS BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOLSON RS BEVERAGE 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 MOLSON COORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOLSON RS BEVERAGE has no effect on the direction of COLUMBIA SPORTSWEAR i.e., COLUMBIA SPORTSWEAR and MOLSON COORS go up and down completely randomly.
Pair Corralation between COLUMBIA SPORTSWEAR and MOLSON COORS
Assuming the 90 days trading horizon COLUMBIA SPORTSWEAR is expected to generate 1.98 times more return on investment than MOLSON COORS. However, COLUMBIA SPORTSWEAR is 1.98 times more volatile than MOLSON RS BEVERAGE. It trades about 0.39 of its potential returns per unit of risk. MOLSON RS BEVERAGE is currently generating about 0.41 per unit of risk. If you would invest 6,973 in COLUMBIA SPORTSWEAR on September 1, 2024 and sell it today you would earn a total of 1,327 from holding COLUMBIA SPORTSWEAR or generate 19.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COLUMBIA SPORTSWEAR vs. MOLSON RS BEVERAGE
Performance |
| Timeline |
| COLUMBIA SPORTSWEAR |
| MOLSON RS BEVERAGE |
COLUMBIA SPORTSWEAR and MOLSON COORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COLUMBIA SPORTSWEAR and MOLSON COORS
The main advantage of trading using opposite COLUMBIA SPORTSWEAR and MOLSON COORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COLUMBIA SPORTSWEAR position performs unexpectedly, MOLSON COORS 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 MOLSON COORS will offset losses from the drop in MOLSON COORS's long position.| COLUMBIA SPORTSWEAR vs. SIVERS SEMICONDUCTORS AB | COLUMBIA SPORTSWEAR vs. Darden Restaurants | COLUMBIA SPORTSWEAR vs. Reliance Steel Aluminum | COLUMBIA SPORTSWEAR vs. Q2M Managementberatung AG |
| MOLSON COORS vs. G8 EDUCATION | MOLSON COORS vs. TAL Education Group | MOLSON COORS vs. IDP EDUCATION LTD | MOLSON COORS vs. Xinhua Winshare Publishing |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |