Correlation Between Multi Manager and Columbia Thermostat
Can any of the company-specific risk be diversified away by investing in both Multi Manager and Columbia Thermostat 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 Multi Manager and Columbia Thermostat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Manager Directional Alternative and Columbia Thermostat Fund, you can compare the effects of market volatilities on Multi Manager and Columbia Thermostat 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 Multi Manager with a short position of Columbia Thermostat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Manager and Columbia Thermostat.
Diversification Opportunities for Multi Manager and Columbia Thermostat
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Multi and Columbia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager Directional Alte and Columbia Thermostat Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Thermostat and Multi Manager 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 Multi Manager Directional Alternative are associated (or correlated) with Columbia Thermostat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Thermostat has no effect on the direction of Multi Manager i.e., Multi Manager and Columbia Thermostat go up and down completely randomly.
Pair Corralation between Multi Manager and Columbia Thermostat
If you would invest 612.00 in Multi Manager Directional Alternative on January 20, 2025 and sell it today you would earn a total of 108.00 from holding Multi Manager Directional Alternative or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Multi Manager Directional Alte vs. Columbia Thermostat Fund
Performance |
| Timeline |
| Multi Manager Direct |
| Columbia Thermostat |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Multi Manager and Columbia Thermostat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Manager and Columbia Thermostat
The main advantage of trading using opposite Multi Manager and Columbia Thermostat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Manager position performs unexpectedly, Columbia Thermostat 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 Thermostat will offset losses from the drop in Columbia Thermostat's long position.| Multi Manager vs. Vanguard Intermediate Term Tax Exempt | Multi Manager vs. Arrow Dwa Balanced | Multi Manager vs. Aqr Diversified Arbitrage | Multi Manager vs. Ab Global Risk |
| Columbia Thermostat vs. Columbia Thermostat Fund | Columbia Thermostat vs. Columbia Thermostat Fund | Columbia Thermostat vs. Columbia Income Builder |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |