Correlation Between FlexShares STOXX and Columbia Sustainable
Can any of the company-specific risk be diversified away by investing in both FlexShares STOXX and Columbia Sustainable 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 FlexShares STOXX and Columbia Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FlexShares STOXX Global and Columbia Sustainable Equity, you can compare the effects of market volatilities on FlexShares STOXX and Columbia Sustainable 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 FlexShares STOXX with a short position of Columbia Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlexShares STOXX and Columbia Sustainable.
Diversification Opportunities for FlexShares STOXX and Columbia Sustainable
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between FlexShares and Columbia is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding FlexShares STOXX Global and Columbia Sustainable Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Sustainable and FlexShares STOXX 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 FlexShares STOXX Global are associated (or correlated) with Columbia Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Sustainable has no effect on the direction of FlexShares STOXX i.e., FlexShares STOXX and Columbia Sustainable go up and down completely randomly.
Pair Corralation between FlexShares STOXX and Columbia Sustainable
If you would invest 16,653 in FlexShares STOXX Global on November 2, 2024 and sell it today you would earn a total of 1,049 from holding FlexShares STOXX Global or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.97% |
| Values | Daily Returns |
FlexShares STOXX Global vs. Columbia Sustainable Equity
Performance |
| Timeline |
| FlexShares STOXX Global |
| Columbia Sustainable |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FlexShares STOXX and Columbia Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FlexShares STOXX and Columbia Sustainable
The main advantage of trading using opposite FlexShares STOXX and Columbia Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FlexShares STOXX position performs unexpectedly, Columbia Sustainable 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 Sustainable will offset losses from the drop in Columbia Sustainable's long position.| FlexShares STOXX vs. FlexShares Quality Large | FlexShares STOXX vs. FlexShares Disciplined Duration | FlexShares STOXX vs. FlexShares Real Assets | FlexShares STOXX vs. First Trust Developed |
| Columbia Sustainable vs. FlexShares STOXX Global | Columbia Sustainable vs. Amplify ETF Trust | Columbia Sustainable vs. Invesco SP 100 | Columbia Sustainable vs. WisdomTree Europe Quality |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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