Correlation Between Seabridge Gold and Columbia Sportswear
Can any of the company-specific risk be diversified away by investing in both Seabridge Gold 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 Seabridge Gold and Columbia Sportswear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seabridge Gold and Columbia Sportswear, you can compare the effects of market volatilities on Seabridge Gold 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 Seabridge Gold with a short position of Columbia Sportswear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seabridge Gold and Columbia Sportswear.
Diversification Opportunities for Seabridge Gold and Columbia Sportswear
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Seabridge and Columbia is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Seabridge Gold and Columbia Sportswear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Sportswear and Seabridge Gold 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 Seabridge Gold 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 Seabridge Gold i.e., Seabridge Gold and Columbia Sportswear go up and down completely randomly.
Pair Corralation between Seabridge Gold and Columbia Sportswear
Assuming the 90 days horizon Seabridge Gold is expected to generate 1.32 times less return on investment than Columbia Sportswear. In addition to that, Seabridge Gold is 1.66 times more volatile than Columbia Sportswear. It trades about 0.02 of its total potential returns per unit of risk. Columbia Sportswear is currently generating about 0.04 per unit of volatility. If you would invest 6,684 in Columbia Sportswear on September 12, 2024 and sell it today you would earn a total of 1,666 from holding Columbia Sportswear or generate 24.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Seabridge Gold vs. Columbia Sportswear
Performance |
| Timeline |
| Seabridge Gold |
| Columbia Sportswear |
Seabridge Gold and Columbia Sportswear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seabridge Gold and Columbia Sportswear
The main advantage of trading using opposite Seabridge Gold and Columbia Sportswear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seabridge Gold 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.| Seabridge Gold vs. INTERSHOP Communications Aktiengesellschaft | Seabridge Gold vs. Cogent Communications Holdings | Seabridge Gold vs. Citic Telecom International | Seabridge Gold vs. Lion One Metals |
| Columbia Sportswear vs. Superior Plus Corp | Columbia Sportswear vs. SIVERS SEMICONDUCTORS AB | Columbia Sportswear vs. Norsk Hydro ASA | Columbia Sportswear vs. Reliance Steel Aluminum |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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