Correlation Between Columbia Integrated and Columbia Greater
Can any of the company-specific risk be diversified away by investing in both Columbia Integrated and Columbia Greater 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 Integrated and Columbia Greater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Integrated Large and Columbia Greater China, you can compare the effects of market volatilities on Columbia Integrated and Columbia Greater 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 Integrated with a short position of Columbia Greater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Integrated and Columbia Greater.
Diversification Opportunities for Columbia Integrated and Columbia Greater
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Columbia and Columbia is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Integrated Large and Columbia Greater China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Greater China and Columbia Integrated 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 Integrated Large are associated (or correlated) with Columbia Greater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Greater China has no effect on the direction of Columbia Integrated i.e., Columbia Integrated and Columbia Greater go up and down completely randomly.
Pair Corralation between Columbia Integrated and Columbia Greater
Assuming the 90 days horizon Columbia Integrated Large is expected to generate 0.62 times more return on investment than Columbia Greater. However, Columbia Integrated Large is 1.6 times less risky than Columbia Greater. It trades about 0.11 of its potential returns per unit of risk. Columbia Greater China is currently generating about -0.15 per unit of risk. If you would invest 2,354 in Columbia Integrated Large on August 30, 2024 and sell it today you would earn a total of 61.00 from holding Columbia Integrated Large or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Columbia Integrated Large vs. Columbia Greater China
Performance |
| Timeline |
| Columbia Integrated Large |
| Columbia Greater China |
Columbia Integrated and Columbia Greater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Integrated and Columbia Greater
The main advantage of trading using opposite Columbia Integrated and Columbia Greater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Integrated position performs unexpectedly, Columbia Greater 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 Greater will offset losses from the drop in Columbia Greater's long position.| Columbia Integrated vs. Blackrock High Yield | Columbia Integrated vs. Tiaa Cref High Yield Fund | Columbia Integrated vs. Ppm High Yield | Columbia Integrated vs. Siit High Yield |
| Columbia Greater vs. Matthews China Dividend | Columbia Greater vs. Matthews China Fund | Columbia Greater vs. Matthews China Small | Columbia Greater vs. Aquagold International |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |