Correlation Between Columbia Sportswear and LBG MEDIA
Can any of the company-specific risk be diversified away by investing in both Columbia Sportswear and LBG MEDIA 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 LBG MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Sportswear and LBG MEDIA PLC, you can compare the effects of market volatilities on Columbia Sportswear and LBG MEDIA 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 LBG MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Sportswear and LBG MEDIA.
Diversification Opportunities for Columbia Sportswear and LBG MEDIA
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Columbia and LBG is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Sportswear and LBG MEDIA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LBG MEDIA PLC 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 LBG MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LBG MEDIA PLC has no effect on the direction of Columbia Sportswear i.e., Columbia Sportswear and LBG MEDIA go up and down completely randomly.
Pair Corralation between Columbia Sportswear and LBG MEDIA
Assuming the 90 days horizon Columbia Sportswear is expected to generate 0.63 times more return on investment than LBG MEDIA. However, Columbia Sportswear is 1.58 times less risky than LBG MEDIA. It trades about 0.01 of its potential returns per unit of risk. LBG MEDIA PLC is currently generating about -0.01 per unit of risk. If you would invest 4,495 in Columbia Sportswear on August 16, 2025 and sell it today you would earn a total of 5.00 from holding Columbia Sportswear or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Sportswear vs. LBG MEDIA PLC
Performance |
| Timeline |
| Columbia Sportswear |
| LBG MEDIA PLC |
Columbia Sportswear and LBG MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Sportswear and LBG MEDIA
The main advantage of trading using opposite Columbia Sportswear and LBG MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Sportswear position performs unexpectedly, LBG MEDIA 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 LBG MEDIA will offset losses from the drop in LBG MEDIA's long position.| Columbia Sportswear vs. HM HENMAUUNSPADR 15 | Columbia Sportswear vs. H M Hennes | Columbia Sportswear vs. Moncler SpA | Columbia Sportswear vs. VF Corporation |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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