Correlation Between COLUMBIA SPORTSWEAR and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both COLUMBIA SPORTSWEAR and MCEWEN 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 MCEWEN 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 MCEWEN MINING INC, you can compare the effects of market volatilities on COLUMBIA SPORTSWEAR and MCEWEN 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 MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of COLUMBIA SPORTSWEAR and MCEWEN MINING.
Diversification Opportunities for COLUMBIA SPORTSWEAR and MCEWEN MINING
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COLUMBIA and MCEWEN is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding COLUMBIA SPORTSWEAR and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING INC 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 MCEWEN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCEWEN MINING INC has no effect on the direction of COLUMBIA SPORTSWEAR i.e., COLUMBIA SPORTSWEAR and MCEWEN MINING go up and down completely randomly.
Pair Corralation between COLUMBIA SPORTSWEAR and MCEWEN MINING
Assuming the 90 days trading horizon COLUMBIA SPORTSWEAR is expected to generate 0.52 times more return on investment than MCEWEN MINING. However, COLUMBIA SPORTSWEAR is 1.91 times less risky than MCEWEN MINING. It trades about 0.41 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.2 per unit of risk. If you would invest 6,973 in COLUMBIA SPORTSWEAR on August 29, 2024 and sell it today you would earn a total of 1,427 from holding COLUMBIA SPORTSWEAR or generate 20.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
COLUMBIA SPORTSWEAR vs. MCEWEN MINING INC
Performance |
| Timeline |
| COLUMBIA SPORTSWEAR |
| MCEWEN MINING INC |
COLUMBIA SPORTSWEAR and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COLUMBIA SPORTSWEAR and MCEWEN MINING
The main advantage of trading using opposite COLUMBIA SPORTSWEAR and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COLUMBIA SPORTSWEAR position performs unexpectedly, MCEWEN 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 MCEWEN MINING will offset losses from the drop in MCEWEN MINING's long position.| COLUMBIA SPORTSWEAR vs. PennyMac Mortgage Investment | COLUMBIA SPORTSWEAR vs. ECHO INVESTMENT ZY | COLUMBIA SPORTSWEAR vs. PennantPark Investment | COLUMBIA SPORTSWEAR vs. SLR Investment Corp |
| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Talanx AG |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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