Correlation Between Columbia Real and Centre American
Can any of the company-specific risk be diversified away by investing in both Columbia Real and Centre American 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 Real and Centre American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Real Estate and Centre American Select, you can compare the effects of market volatilities on Columbia Real and Centre American 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 Real with a short position of Centre American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Real and Centre American.
Diversification Opportunities for Columbia Real and Centre American
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Columbia and Centre is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Real Estate and Centre American Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centre American Select and Columbia Real 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 Real Estate are associated (or correlated) with Centre American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centre American Select has no effect on the direction of Columbia Real i.e., Columbia Real and Centre American go up and down completely randomly.
Pair Corralation between Columbia Real and Centre American
Assuming the 90 days horizon Columbia Real Estate is expected to under-perform the Centre American. In addition to that, Columbia Real is 1.77 times more volatile than Centre American Select. It trades about -0.02 of its total potential returns per unit of risk. Centre American Select is currently generating about 0.04 per unit of volatility. If you would invest 1,819 in Centre American Select on September 13, 2024 and sell it today you would earn a total of 17.00 from holding Centre American Select or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Columbia Real Estate vs. Centre American Select
Performance |
| Timeline |
| Columbia Real Estate |
| Centre American Select |
Columbia Real and Centre American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Real and Centre American
The main advantage of trading using opposite Columbia Real and Centre American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Real position performs unexpectedly, Centre American 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 Centre American will offset losses from the drop in Centre American's long position.| Columbia Real vs. Realty Income | Columbia Real vs. Dynex Capital | Columbia Real vs. First Industrial Realty | Columbia Real vs. Healthcare Realty Trust |
| Centre American vs. Origin Emerging Markets | Centre American vs. Transamerica Emerging Markets | Centre American vs. Barings Emerging Markets | Centre American vs. Siit Emerging Markets |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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