Correlation Between SQUIRREL MEDIA and Columbia Sportswear

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Can any of the company-specific risk be diversified away by investing in both SQUIRREL MEDIA 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 SQUIRREL MEDIA and Columbia Sportswear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SQUIRREL MEDIA SA and Columbia Sportswear, you can compare the effects of market volatilities on SQUIRREL MEDIA 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 SQUIRREL MEDIA with a short position of Columbia Sportswear. Check out your portfolio center. Please also check ongoing floating volatility patterns of SQUIRREL MEDIA and Columbia Sportswear.

Diversification Opportunities for SQUIRREL MEDIA and Columbia Sportswear

SQUIRRELColumbiaDiversified AwaySQUIRRELColumbiaDiversified Away100%
-0.14
  Correlation Coefficient

Good diversification

The 3 months correlation between SQUIRREL and Columbia is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SQUIRREL MEDIA SA and Columbia Sportswear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Sportswear and SQUIRREL MEDIA 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 SQUIRREL MEDIA 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 SQUIRREL MEDIA i.e., SQUIRREL MEDIA and Columbia Sportswear go up and down completely randomly.

Pair Corralation between SQUIRREL MEDIA and Columbia Sportswear

Assuming the 90 days horizon SQUIRREL MEDIA SA is expected to generate 1.05 times more return on investment than Columbia Sportswear. However, SQUIRREL MEDIA is 1.05 times more volatile than Columbia Sportswear. It trades about 0.17 of its potential returns per unit of risk. Columbia Sportswear is currently generating about 0.02 per unit of risk. If you would invest  121.00  in SQUIRREL MEDIA SA on November 19, 2024 and sell it today you would earn a total of  26.00  from holding SQUIRREL MEDIA SA or generate 21.49% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

SQUIRREL MEDIA SA  vs.  Columbia Sportswear

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 05101520
JavaScript chart by amCharts 3.21.150MD CUW
       Timeline  
SQUIRREL MEDIA SA 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in SQUIRREL MEDIA SA are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SQUIRREL MEDIA reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.21.251.31.351.41.45
Columbia Sportswear 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Columbia Sportswear are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Columbia Sportswear is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb767880828486

SQUIRREL MEDIA and Columbia Sportswear Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.1-4.57-3.04-1.510.021.613.284.956.628.29 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.150MD CUW
       Returns  

Pair Trading with SQUIRREL MEDIA and Columbia Sportswear

The main advantage of trading using opposite SQUIRREL MEDIA and Columbia Sportswear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SQUIRREL MEDIA 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.
The idea behind SQUIRREL MEDIA SA and Columbia Sportswear pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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