Correlation Between JD SPORTS and COLUMBIA SPORTSWEAR
Can any of the company-specific risk be diversified away by investing in both JD SPORTS 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 JD SPORTS and COLUMBIA SPORTSWEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JD SPORTS FASH and COLUMBIA SPORTSWEAR, you can compare the effects of market volatilities on JD SPORTS 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 JD SPORTS with a short position of COLUMBIA SPORTSWEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and COLUMBIA SPORTSWEAR.
Diversification Opportunities for JD SPORTS and COLUMBIA SPORTSWEAR
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 9JD and COLUMBIA is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and COLUMBIA SPORTSWEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA SPORTSWEAR and JD SPORTS 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 JD SPORTS FASH 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 JD SPORTS i.e., JD SPORTS and COLUMBIA SPORTSWEAR go up and down completely randomly.
Pair Corralation between JD SPORTS and COLUMBIA SPORTSWEAR
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the COLUMBIA SPORTSWEAR. In addition to that, JD SPORTS is 1.0 times more volatile than COLUMBIA SPORTSWEAR. It trades about -0.3 of its total potential returns per unit of risk. COLUMBIA SPORTSWEAR is currently generating about 0.11 per unit of volatility. If you would invest 4,320 in COLUMBIA SPORTSWEAR on August 15, 2025 and sell it today you would earn a total of 180.00 from holding COLUMBIA SPORTSWEAR or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. COLUMBIA SPORTSWEAR
Performance |
| Timeline |
| JD SPORTS FASH |
| COLUMBIA SPORTSWEAR |
JD SPORTS and COLUMBIA SPORTSWEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and COLUMBIA SPORTSWEAR
The main advantage of trading using opposite JD SPORTS and COLUMBIA SPORTSWEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS 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.| JD SPORTS vs. FAST RETAIL ADR | JD SPORTS vs. AOYAMA TRADING | JD SPORTS vs. SIVERS SEMICONDUCTORS AB | JD SPORTS vs. BANK HANDLOWY |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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