Correlation Between Gateway Real and Columbia Sportswear
Can any of the company-specific risk be diversified away by investing in both Gateway Real and Columbia Sportswear 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 Gateway Real and Columbia Sportswear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gateway Real Estate and Columbia Sportswear, you can compare the effects of market volatilities on Gateway Real and Columbia Sportswear 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 Gateway Real with a short position of Columbia Sportswear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gateway Real and Columbia Sportswear.
Diversification Opportunities for Gateway Real and Columbia Sportswear
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gateway and Columbia is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Gateway Real Estate and Columbia Sportswear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Sportswear and Gateway Real 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 Gateway Real Estate are associated (or correlated) with Columbia Sportswear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Sportswear has no effect on the direction of Gateway Real i.e., Gateway Real and Columbia Sportswear go up and down completely randomly.
Pair Corralation between Gateway Real and Columbia Sportswear
Assuming the 90 days horizon Gateway Real Estate is expected to generate 11.13 times more return on investment than Columbia Sportswear. However, Gateway Real is 11.13 times more volatile than Columbia Sportswear. It trades about 0.04 of its potential returns per unit of risk. Columbia Sportswear is currently generating about 0.02 per unit of risk. If you would invest 312.00 in Gateway Real Estate on November 8, 2024 and sell it today you would lose (233.00) from holding Gateway Real Estate or give up 74.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Gateway Real Estate vs. Columbia Sportswear
Performance |
| Timeline |
| Gateway Real Estate |
| Columbia Sportswear |
Gateway Real and Columbia Sportswear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gateway Real and Columbia Sportswear
The main advantage of trading using opposite Gateway Real and Columbia Sportswear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gateway Real position performs unexpectedly, Columbia Sportswear 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 Columbia Sportswear will offset losses from the drop in Columbia Sportswear's long position.| Gateway Real vs. Addtech AB | Gateway Real vs. Advanced Medical Solutions | Gateway Real vs. MeVis Medical Solutions | Gateway Real vs. Sunny Optical Technology |
| Columbia Sportswear vs. HM HENMAUUNSPADR 15 | Columbia Sportswear vs. H M Hennes | Columbia Sportswear vs. H M Hennes | Columbia Sportswear vs. Moncler SpA |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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