Correlation Between Aam Select and Columbia Flexible
Can any of the company-specific risk be diversified away by investing in both Aam Select and Columbia Flexible 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 Aam Select and Columbia Flexible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aam Select Income and Columbia Flexible Capital, you can compare the effects of market volatilities on Aam Select and Columbia Flexible 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 Aam Select with a short position of Columbia Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam Select and Columbia Flexible.
Diversification Opportunities for Aam Select and Columbia Flexible
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aam and Columbia is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aam Select Income and Columbia Flexible Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Flexible Capital and Aam Select 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 Aam Select Income are associated (or correlated) with Columbia Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Flexible Capital has no effect on the direction of Aam Select i.e., Aam Select and Columbia Flexible go up and down completely randomly.
Pair Corralation between Aam Select and Columbia Flexible
Assuming the 90 days horizon Aam Select is expected to generate 1.67 times less return on investment than Columbia Flexible. But when comparing it to its historical volatility, Aam Select Income is 1.22 times less risky than Columbia Flexible. It trades about 0.09 of its potential returns per unit of risk. Columbia Flexible Capital is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,183 in Columbia Flexible Capital on September 12, 2024 and sell it today you would earn a total of 246.00 from holding Columbia Flexible Capital or generate 20.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Aam Select Income vs. Columbia Flexible Capital
Performance |
| Timeline |
| Aam Select Income |
| Columbia Flexible Capital |
Aam Select and Columbia Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aam Select and Columbia Flexible
The main advantage of trading using opposite Aam Select and Columbia Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam Select position performs unexpectedly, Columbia Flexible 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 Flexible will offset losses from the drop in Columbia Flexible's long position.| Aam Select vs. Guggenheim Diversified Income | Aam Select vs. Federated Hermes Conservative | Aam Select vs. Global Diversified Income | Aam Select vs. Jpmorgan Diversified Fund |
| Columbia Flexible vs. Scharf Global Opportunity | Columbia Flexible vs. Falcon Focus Scv | Columbia Flexible vs. Aam Select Income | Columbia Flexible vs. Arrow Managed Futures |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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 | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |