Correlation Between Columbia Sportswear and GOLDQUEST MINING

Can any of the company-specific risk be diversified away by investing in both Columbia Sportswear and GOLDQUEST MINING 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 GOLDQUEST MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Columbia Sportswear and GOLDQUEST MINING, you can compare the effects of market volatilities on Columbia Sportswear and GOLDQUEST MINING 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 GOLDQUEST MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Sportswear and GOLDQUEST MINING.

Diversification Opportunities for Columbia Sportswear and GOLDQUEST MINING

-0.73

Correlation Coefficient

Columbia Sportswear  GOLDQUEST MINING

Pay attention - limited upside

The 3 months correlation between Columbia and GOLDQUEST is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Sportswear and GOLDQUEST MINING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLDQUEST MINING 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 GOLDQUEST MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLDQUEST MINING has no effect on the direction of Columbia Sportswear i.e., Columbia Sportswear and GOLDQUEST MINING go up and down completely randomly.

Pair Corralation between Columbia Sportswear and GOLDQUEST MINING

Assuming the 90 days horizon Columbia Sportswear is expected to under-perform the GOLDQUEST MINING. But the stock apears to be less risky and, when comparing its historical volatility, Columbia Sportswear is 3.0 times less risky than GOLDQUEST MINING. The stock trades about -0.01 of its potential returns per unit of risk. The GOLDQUEST MINING is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  5.40  in GOLDQUEST MINING on April 24, 2025 and sell it today you would earn a total of  37.60  from holding GOLDQUEST MINING or generate 696.3% return on investment over 90 days.

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

Columbia Sportswear  vs.  GOLDQUEST MINING

Columbia Sportswear

Risk-Adjusted Performance

Very Weak

Over the last 90 days Columbia Sportswear has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

GOLDQUEST MINING

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GOLDQUEST MINING are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, GOLDQUEST MINING unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Columbia Sportswear and GOLDQUEST MINING

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

The idea behind Columbia Sportswear and GOLDQUEST MINING 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.