Correlation Between Columbia Sportswear and Chatham Lodging
Can any of the company-specific risk be diversified away by investing in both Columbia Sportswear and Chatham Lodging 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 Chatham Lodging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Sportswear and Chatham Lodging Trust, you can compare the effects of market volatilities on Columbia Sportswear and Chatham Lodging 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 Chatham Lodging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Sportswear and Chatham Lodging.
Diversification Opportunities for Columbia Sportswear and Chatham Lodging
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Columbia and Chatham is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Sportswear and Chatham Lodging Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chatham Lodging Trust 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 Chatham Lodging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chatham Lodging Trust has no effect on the direction of Columbia Sportswear i.e., Columbia Sportswear and Chatham Lodging go up and down completely randomly.
Pair Corralation between Columbia Sportswear and Chatham Lodging
Given the investment horizon of 90 days Columbia Sportswear is expected to generate 3.45 times more return on investment than Chatham Lodging. However, Columbia Sportswear is 3.45 times more volatile than Chatham Lodging Trust. It trades about -0.01 of its potential returns per unit of risk. Chatham Lodging Trust is currently generating about -0.14 per unit of risk. If you would invest 5,536 in Columbia Sportswear on September 11, 2025 and sell it today you would lose (152.00) from holding Columbia Sportswear or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Sportswear vs. Chatham Lodging Trust
Performance |
| Timeline |
| Columbia Sportswear |
| Chatham Lodging Trust |
Columbia Sportswear and Chatham Lodging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Sportswear and Chatham Lodging
The main advantage of trading using opposite Columbia Sportswear and Chatham Lodging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Sportswear position performs unexpectedly, Chatham Lodging 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 Chatham Lodging will offset losses from the drop in Chatham Lodging's long position.| Columbia Sportswear vs. Ermenegildo Zegna NV | Columbia Sportswear vs. Hanesbrands | Columbia Sportswear vs. American Eagle Outfitters | Columbia Sportswear vs. Buckle Inc |
| Chatham Lodging vs. RLJ Lodging Trust | Chatham Lodging vs. Centerspace | Chatham Lodging vs. Pebblebrook Hotel Trust | Chatham Lodging vs. Piedmont Office Realty |
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.
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