Correlation Between Norma Group and COLUMBIA SPORTSWEAR
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By analyzing existing cross correlation between Norma Group AG and COLUMBIA SPORTSWEAR, you can compare the effects of market volatilities on Norma Group 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 Norma Group with a short position of COLUMBIA SPORTSWEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Norma Group and COLUMBIA SPORTSWEAR.
Diversification Opportunities for Norma Group and COLUMBIA SPORTSWEAR
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Norma and COLUMBIA is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Norma Group AG and COLUMBIA SPORTSWEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA SPORTSWEAR and Norma Group 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 Norma Group AG 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 Norma Group i.e., Norma Group and COLUMBIA SPORTSWEAR go up and down completely randomly.
Pair Corralation between Norma Group and COLUMBIA SPORTSWEAR
Assuming the 90 days trading horizon Norma Group is expected to generate 1.64 times less return on investment than COLUMBIA SPORTSWEAR. In addition to that, Norma Group is 1.95 times more volatile than COLUMBIA SPORTSWEAR. It trades about 0.1 of its total potential returns per unit of risk. COLUMBIA SPORTSWEAR is currently generating about 0.32 per unit of volatility. If you would invest 7,322 in COLUMBIA SPORTSWEAR on September 3, 2024 and sell it today you would earn a total of 978.00 from holding COLUMBIA SPORTSWEAR or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Norma Group AG vs. COLUMBIA SPORTSWEAR
Performance |
| Timeline |
| Norma Group AG |
| COLUMBIA SPORTSWEAR |
Norma Group and COLUMBIA SPORTSWEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Norma Group and COLUMBIA SPORTSWEAR
The main advantage of trading using opposite Norma Group and COLUMBIA SPORTSWEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Norma Group 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.| Norma Group vs. METTLER TOLEDO INTL | Norma Group vs. METTLER TOLEDO INTL | Norma Group vs. Mitie Group PLC | Norma Group vs. LODESTAR MIN |
| COLUMBIA SPORTSWEAR vs. TOTAL GABON | COLUMBIA SPORTSWEAR vs. Walgreens Boots Alliance | COLUMBIA SPORTSWEAR vs. Peak Resources Limited |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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