Correlation Between Garofalo Health and COLUMBIA SPORTSWEAR
Can any of the company-specific risk be diversified away by investing in both Garofalo Health 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 Garofalo Health and COLUMBIA SPORTSWEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garofalo Health Care and COLUMBIA SPORTSWEAR, you can compare the effects of market volatilities on Garofalo Health 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 Garofalo Health with a short position of COLUMBIA SPORTSWEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garofalo Health and COLUMBIA SPORTSWEAR.
Diversification Opportunities for Garofalo Health and COLUMBIA SPORTSWEAR
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Garofalo and COLUMBIA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Garofalo Health Care and COLUMBIA SPORTSWEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA SPORTSWEAR and Garofalo Health 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 Garofalo Health Care 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 Garofalo Health i.e., Garofalo Health and COLUMBIA SPORTSWEAR go up and down completely randomly.
Pair Corralation between Garofalo Health and COLUMBIA SPORTSWEAR
Assuming the 90 days horizon Garofalo Health is expected to generate 1.29 times less return on investment than COLUMBIA SPORTSWEAR. But when comparing it to its historical volatility, Garofalo Health Care is 1.34 times less risky than COLUMBIA SPORTSWEAR. It trades about 0.05 of its potential returns per unit of risk. COLUMBIA SPORTSWEAR is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,276 in COLUMBIA SPORTSWEAR on August 13, 2025 and sell it today you would earn a total of 184.00 from holding COLUMBIA SPORTSWEAR or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garofalo Health Care vs. COLUMBIA SPORTSWEAR
Performance |
| Timeline |
| Garofalo Health Care |
| COLUMBIA SPORTSWEAR |
Garofalo Health and COLUMBIA SPORTSWEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garofalo Health and COLUMBIA SPORTSWEAR
The main advantage of trading using opposite Garofalo Health and COLUMBIA SPORTSWEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garofalo Health 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.| Garofalo Health vs. Monster Beverage Corp | Garofalo Health vs. Universal Insurance Holdings | Garofalo Health vs. The Peoples Insurance | Garofalo Health vs. HANOVER INSURANCE |
| COLUMBIA SPORTSWEAR vs. Apple Inc | COLUMBIA SPORTSWEAR vs. Apple Inc | COLUMBIA SPORTSWEAR vs. Apple Inc | COLUMBIA SPORTSWEAR vs. Apple Inc |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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