Correlation Between RTL Group and COLUMBIA SPORTSWEAR
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By analyzing existing cross correlation between RTL Group SA and COLUMBIA SPORTSWEAR, you can compare the effects of market volatilities on RTL 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 RTL Group with a short position of COLUMBIA SPORTSWEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of RTL Group and COLUMBIA SPORTSWEAR.
Diversification Opportunities for RTL Group and COLUMBIA SPORTSWEAR
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RTL and COLUMBIA is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding RTL Group SA and COLUMBIA SPORTSWEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA SPORTSWEAR and RTL 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 RTL Group SA 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 RTL Group i.e., RTL Group and COLUMBIA SPORTSWEAR go up and down completely randomly.
Pair Corralation between RTL Group and COLUMBIA SPORTSWEAR
Assuming the 90 days trading horizon RTL Group SA is expected to generate 1.14 times more return on investment than COLUMBIA SPORTSWEAR. However, RTL Group is 1.14 times more volatile than COLUMBIA SPORTSWEAR. It trades about 0.37 of its potential returns per unit of risk. COLUMBIA SPORTSWEAR is currently generating about 0.32 per unit of risk. If you would invest 2,715 in RTL Group SA on November 3, 2024 and sell it today you would earn a total of 240.00 from holding RTL Group SA or generate 8.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RTL Group SA vs. COLUMBIA SPORTSWEAR
Performance |
| Timeline |
| RTL Group SA |
| COLUMBIA SPORTSWEAR |
RTL Group and COLUMBIA SPORTSWEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RTL Group and COLUMBIA SPORTSWEAR
The main advantage of trading using opposite RTL Group and COLUMBIA SPORTSWEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RTL 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.| RTL Group vs. PARKEN Sport Entertainment | RTL Group vs. Beta Systems Software | RTL Group vs. Alfa Financial Software | RTL Group vs. USU Software AG |
| COLUMBIA SPORTSWEAR vs. Hua Hong Semiconductor | COLUMBIA SPORTSWEAR vs. CAIRN HOMES EO | COLUMBIA SPORTSWEAR vs. CITY OFFICE REIT | COLUMBIA SPORTSWEAR vs. MagnaChip Semiconductor Corp |
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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