Correlation Between Columbia Acorn and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Columbia Acorn and Old Westbury 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 Acorn and Old Westbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Acorn Fund and Old Westbury Municipal, you can compare the effects of market volatilities on Columbia Acorn and Old Westbury 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 Acorn with a short position of Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Acorn and Old Westbury.
Diversification Opportunities for Columbia Acorn and Old Westbury
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Columbia and Old is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Acorn Fund and Old Westbury Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Municipal and Columbia Acorn 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 Acorn Fund are associated (or correlated) with Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Municipal has no effect on the direction of Columbia Acorn i.e., Columbia Acorn and Old Westbury go up and down completely randomly.
Pair Corralation between Columbia Acorn and Old Westbury
Assuming the 90 days horizon Columbia Acorn Fund is expected to generate 7.47 times more return on investment than Old Westbury. However, Columbia Acorn is 7.47 times more volatile than Old Westbury Municipal. It trades about 0.08 of its potential returns per unit of risk. Old Westbury Municipal is currently generating about 0.04 per unit of risk. If you would invest 1,216 in Columbia Acorn Fund on November 4, 2024 and sell it today you would earn a total of 218.00 from holding Columbia Acorn Fund or generate 17.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 82.19% |
| Values | Daily Returns |
Columbia Acorn Fund vs. Old Westbury Municipal
Performance |
| Timeline |
| Columbia Acorn |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Old Westbury Municipal |
Columbia Acorn and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Acorn and Old Westbury
The main advantage of trading using opposite Columbia Acorn and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Acorn position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Columbia Acorn vs. Simt High Yield | Columbia Acorn vs. Msift High Yield | Columbia Acorn vs. Six Circles Credit | Columbia Acorn vs. Jpmorgan High Yield |
| Old Westbury vs. Rbb Fund | Old Westbury vs. Morningstar Global Income | Old Westbury vs. Dws Global Macro | Old Westbury vs. Ab Global Bond |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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