Correlation Between City National and Columbia Convertible
Can any of the company-specific risk be diversified away by investing in both City National and Columbia Convertible 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 City National and Columbia Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City National Rochdale and Columbia Vertible Securities, you can compare the effects of market volatilities on City National and Columbia Convertible 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 City National with a short position of Columbia Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of City National and Columbia Convertible.
Diversification Opportunities for City National and Columbia Convertible
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between City and Columbia is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding City National Rochdale and Columbia Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Convertible and City National 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 City National Rochdale are associated (or correlated) with Columbia Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Convertible has no effect on the direction of City National i.e., City National and Columbia Convertible go up and down completely randomly.
Pair Corralation between City National and Columbia Convertible
If you would invest 2,195 in Columbia Vertible Securities on September 1, 2024 and sell it today you would earn a total of 139.00 from holding Columbia Vertible Securities or generate 6.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City National Rochdale vs. Columbia Vertible Securities
Performance |
| Timeline |
| City National Rochdale |
| Columbia Convertible |
City National and Columbia Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City National and Columbia Convertible
The main advantage of trading using opposite City National and Columbia Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City National position performs unexpectedly, Columbia Convertible 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 Convertible will offset losses from the drop in Columbia Convertible's long position.| City National vs. Columbia Vertible Securities | City National vs. Rationalpier 88 Convertible | City National vs. Virtus Convertible | City National vs. Allianzgi Convertible Income |
| Columbia Convertible vs. Columbia Porate Income | Columbia Convertible vs. Columbia Ultra Short | Columbia Convertible vs. Columbia Ultra Short | Columbia Convertible vs. Columbia Treasury Index |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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