Correlation Between COLUMBIA SPORTSWEAR and YATRA ONLINE

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

By analyzing existing cross correlation between COLUMBIA SPORTSWEAR and YATRA ONLINE DL 0001, you can compare the effects of market volatilities on COLUMBIA SPORTSWEAR and YATRA ONLINE 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 YATRA ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of COLUMBIA SPORTSWEAR and YATRA ONLINE.

Diversification Opportunities for COLUMBIA SPORTSWEAR and YATRA ONLINE

-0.35

Correlation Coefficient

COLUMBIA SPORTSWEAR  YATRA ONLINE

Very good diversification

The 3 months correlation between COLUMBIA and YATRA is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding COLUMBIA SPORTSWEAR and YATRA ONLINE DL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YATRA ONLINE DL 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 YATRA ONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YATRA ONLINE DL has no effect on the direction of COLUMBIA SPORTSWEAR i.e., COLUMBIA SPORTSWEAR and YATRA ONLINE go up and down completely randomly.

Pair Corralation between COLUMBIA SPORTSWEAR and YATRA ONLINE

Assuming the 90 days trading horizon COLUMBIA SPORTSWEAR is expected to generate 0.48 times more return on investment than YATRA ONLINE. However, COLUMBIA SPORTSWEAR is 2.07 times less risky than YATRA ONLINE. It trades about 0.29 of its potential returns per unit of risk. YATRA ONLINE DL 0001 is currently generating about -0.18 per unit of risk. If you would invest  7,700  in COLUMBIA SPORTSWEAR on September 23, 2024 and sell it today you would earn a total of  750.00  from holding COLUMBIA SPORTSWEAR or generate 9.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

COLUMBIA SPORTSWEAR  vs.  YATRA ONLINE DL 0001

COLUMBIA SPORTSWEAR

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in COLUMBIA SPORTSWEAR are ranked lower than 10 (%) 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.

YATRA ONLINE DL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days YATRA ONLINE DL 0001 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with COLUMBIA SPORTSWEAR and YATRA ONLINE

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

The idea behind COLUMBIA SPORTSWEAR and YATRA ONLINE DL 0001 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.