Correlation Between ASTRA INTERNATIONAL and COLUMBIA SPORTSWEAR

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

Diversification Opportunities for ASTRA INTERNATIONAL and COLUMBIA SPORTSWEAR

ASTRACOLUMBIADiversified AwayASTRACOLUMBIADiversified Away100%
-0.15
  Correlation Coefficient

Good diversification

The 3 months correlation between ASTRA and COLUMBIA is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ASTRA INTERNATIONAL and COLUMBIA SPORTSWEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA SPORTSWEAR and ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL i.e., ASTRA INTERNATIONAL and COLUMBIA SPORTSWEAR go up and down completely randomly.

Pair Corralation between ASTRA INTERNATIONAL and COLUMBIA SPORTSWEAR

Assuming the 90 days trading horizon ASTRA INTERNATIONAL is expected to under-perform the COLUMBIA SPORTSWEAR. In addition to that, ASTRA INTERNATIONAL is 1.37 times more volatile than COLUMBIA SPORTSWEAR. It trades about -0.05 of its total potential returns per unit of risk. COLUMBIA SPORTSWEAR is currently generating about 0.24 per unit of volatility. If you would invest  6,973  in COLUMBIA SPORTSWEAR on October 31, 2024 and sell it today you would earn a total of  1,577  from holding COLUMBIA SPORTSWEAR or generate 22.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

ASTRA INTERNATIONAL  vs.  COLUMBIA SPORTSWEAR

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -5051015
JavaScript chart by amCharts 3.21.15ASJA CUW
       Timeline  
ASTRA INTERNATIONAL 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ASTRA INTERNATIONAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, ASTRA INTERNATIONAL is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.270.2750.280.2850.290.2950.3
COLUMBIA SPORTSWEAR 

Risk-Adjusted Performance

18 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in COLUMBIA SPORTSWEAR are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, COLUMBIA SPORTSWEAR unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan707274767880828486

ASTRA INTERNATIONAL and COLUMBIA SPORTSWEAR Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.36-2.51-1.67-0.830.00.831.662.493.32 0.050.100.15
JavaScript chart by amCharts 3.21.15ASJA CUW
       Returns  

Pair Trading with ASTRA INTERNATIONAL and COLUMBIA SPORTSWEAR

The main advantage of trading using opposite ASTRA INTERNATIONAL and COLUMBIA SPORTSWEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL 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.
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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