Correlation Between Levi Strauss and Columbia Sportswear
Can any of the company-specific risk be diversified away by investing in both Levi Strauss 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 Levi Strauss and Columbia Sportswear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Levi Strauss Co and Columbia Sportswear, you can compare the effects of market volatilities on Levi Strauss 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 Levi Strauss with a short position of Columbia Sportswear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Levi Strauss and Columbia Sportswear.
Diversification Opportunities for Levi Strauss and Columbia Sportswear
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Levi and Columbia is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Levi Strauss Co and Columbia Sportswear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Sportswear and Levi Strauss 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 Levi Strauss Co 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 Levi Strauss i.e., Levi Strauss and Columbia Sportswear go up and down completely randomly.
Pair Corralation between Levi Strauss and Columbia Sportswear
Given the investment horizon of 90 days Levi Strauss Co is expected to generate 0.79 times more return on investment than Columbia Sportswear. However, Levi Strauss Co is 1.26 times less risky than Columbia Sportswear. It trades about 0.19 of its potential returns per unit of risk. Columbia Sportswear is currently generating about -0.08 per unit of risk. If you would invest 1,942 in Levi Strauss Co on July 7, 2025 and sell it today you would earn a total of 503.00 from holding Levi Strauss Co or generate 25.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Levi Strauss Co vs. Columbia Sportswear
Performance |
| Timeline |
| Levi Strauss |
| Columbia Sportswear |
Levi Strauss and Columbia Sportswear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Levi Strauss and Columbia Sportswear
The main advantage of trading using opposite Levi Strauss and Columbia Sportswear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Levi Strauss 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.| Levi Strauss vs. LYFT Inc | Levi Strauss vs. Tapestry | Levi Strauss vs. Capri Holdings | Levi Strauss vs. YETI Holdings |
| Columbia Sportswear vs. Vince Holding Corp | Columbia Sportswear vs. Ermenegildo Zegna NV | Columbia Sportswear vs. Gildan Activewear | Columbia Sportswear vs. G III Apparel Group |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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