Correlation Between Columbia Global and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Columbia Global and Cohen Steers 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 Global and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Global Technology and Cohen Steers Low, you can compare the effects of market volatilities on Columbia Global and Cohen Steers 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 Global with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Global and Cohen Steers.
Diversification Opportunities for Columbia Global and Cohen Steers
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Columbia and Cohen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Global Technology and Cohen Steers Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Low and Columbia Global 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 Global Technology are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Low has no effect on the direction of Columbia Global i.e., Columbia Global and Cohen Steers go up and down completely randomly.
Pair Corralation between Columbia Global and Cohen Steers
Assuming the 90 days horizon Columbia Global Technology is expected to generate 6.97 times more return on investment than Cohen Steers. However, Columbia Global is 6.97 times more volatile than Cohen Steers Low. It trades about 0.09 of its potential returns per unit of risk. Cohen Steers Low is currently generating about 0.15 per unit of risk. If you would invest 5,117 in Columbia Global Technology on September 3, 2024 and sell it today you would earn a total of 4,027 from holding Columbia Global Technology or generate 78.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Global Technology vs. Cohen Steers Low
Performance |
| Timeline |
| Columbia Global Tech |
| Cohen Steers Low |
Columbia Global and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Global and Cohen Steers
The main advantage of trading using opposite Columbia Global and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Global position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Columbia Global vs. Vanguard Information Technology | Columbia Global vs. Technology Portfolio Technology | Columbia Global vs. Fidelity Select Semiconductors | Columbia Global vs. Software And It |
| Cohen Steers vs. Dreyfus Technology Growth | Cohen Steers vs. Columbia Global Technology | Cohen Steers vs. Dreyfus Technology Growth | Cohen Steers vs. Ivy Science And |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |