Correlation Between COLUMBIA SPORTSWEAR and ANGLER GAMING

Can any of the company-specific risk be diversified away by investing in both COLUMBIA SPORTSWEAR and ANGLER GAMING 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 COLUMBIA SPORTSWEAR and ANGLER GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between COLUMBIA SPORTSWEAR and ANGLER GAMING PLC, you can compare the effects of market volatilities on COLUMBIA SPORTSWEAR and ANGLER GAMING 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 COLUMBIA SPORTSWEAR with a short position of ANGLER GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of COLUMBIA SPORTSWEAR and ANGLER GAMING.

Diversification Opportunities for COLUMBIA SPORTSWEAR and ANGLER GAMING

-0.37

Correlation Coefficient

COLUMBIA SPORTSWEAR  ANGLER GAMING

Very good diversification

The 3 months correlation between COLUMBIA and ANGLER is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding COLUMBIA SPORTSWEAR and ANGLER GAMING PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLER GAMING PLC and COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR are associated (or correlated) with ANGLER GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLER GAMING PLC has no effect on the direction of COLUMBIA SPORTSWEAR i.e., COLUMBIA SPORTSWEAR and ANGLER GAMING go up and down completely randomly.

Pair Corralation between COLUMBIA SPORTSWEAR and ANGLER GAMING

Assuming the 90 days trading horizon COLUMBIA SPORTSWEAR is expected to generate 23.86 times less return on investment than ANGLER GAMING. But when comparing it to its historical volatility, COLUMBIA SPORTSWEAR is 3.72 times less risky than ANGLER GAMING. It trades about 0.0 of its potential returns per unit of risk. ANGLER GAMING PLC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  35.00  in ANGLER GAMING PLC on October 22, 2024 and sell it today you would earn a total of  5.00  from holding ANGLER GAMING PLC or generate 14.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

COLUMBIA SPORTSWEAR  vs.  ANGLER GAMING PLC

COLUMBIA SPORTSWEAR

Risk-Adjusted Performance

7 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in COLUMBIA SPORTSWEAR are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, COLUMBIA SPORTSWEAR may actually be approaching a critical reversion point that can send shares even higher in February 2025.

ANGLER GAMING PLC

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ANGLER GAMING PLC are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, ANGLER GAMING reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with COLUMBIA SPORTSWEAR and ANGLER GAMING

The main advantage of trading using opposite COLUMBIA SPORTSWEAR and ANGLER GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COLUMBIA SPORTSWEAR position performs unexpectedly, ANGLER GAMING 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 ANGLER GAMING will offset losses from the drop in ANGLER GAMING's long position.

The idea behind COLUMBIA SPORTSWEAR and ANGLER GAMING PLC 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.