Correlation Between Summit Bank and Columbia Sportswear
Can any of the company-specific risk be diversified away by investing in both Summit Bank 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 Summit Bank and Columbia Sportswear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Bank Group and Columbia Sportswear, you can compare the effects of market volatilities on Summit Bank 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 Summit Bank with a short position of Columbia Sportswear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Bank and Columbia Sportswear.
Diversification Opportunities for Summit Bank and Columbia Sportswear
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Summit and Columbia is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Summit Bank Group and Columbia Sportswear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Sportswear and Summit Bank 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 Summit Bank Group 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 Summit Bank i.e., Summit Bank and Columbia Sportswear go up and down completely randomly.
Pair Corralation between Summit Bank and Columbia Sportswear
Given the investment horizon of 90 days Summit Bank Group is expected to generate 3.16 times more return on investment than Columbia Sportswear. However, Summit Bank is 3.16 times more volatile than Columbia Sportswear. It trades about 0.05 of its potential returns per unit of risk. Columbia Sportswear is currently generating about 0.01 per unit of risk. If you would invest 1,400 in Summit Bank Group on November 3, 2024 and sell it today you would earn a total of 65.00 from holding Summit Bank Group or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Bank Group vs. Columbia Sportswear
Performance |
| Timeline |
| Summit Bank Group |
| Columbia Sportswear |
Summit Bank and Columbia Sportswear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Bank and Columbia Sportswear
The main advantage of trading using opposite Summit Bank and Columbia Sportswear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Bank 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.| Summit Bank vs. Savi Financial | Summit Bank vs. Pacific West Bancorp | Summit Bank vs. Commencement Bancorp | Summit Bank vs. Merchants Marine Bancorp |
| Columbia Sportswear vs. Vince Holding Corp | Columbia Sportswear vs. Ermenegildo Zegna NV | Columbia Sportswear vs. Gildan Activewear | Columbia Sportswear vs. G III Apparel Group |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |