Correlation Between IShares SP and Columbia Research
Can any of the company-specific risk be diversified away by investing in both IShares SP and Columbia Research 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 IShares SP and Columbia Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SP 500 and Columbia Research Enhanced, you can compare the effects of market volatilities on IShares SP and Columbia Research 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 IShares SP with a short position of Columbia Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SP and Columbia Research.
Diversification Opportunities for IShares SP and Columbia Research
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Columbia is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding iShares SP 500 and Columbia Research Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Research and IShares SP 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 iShares SP 500 are associated (or correlated) with Columbia Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Research has no effect on the direction of IShares SP i.e., IShares SP and Columbia Research go up and down completely randomly.
Pair Corralation between IShares SP and Columbia Research
Considering the 90-day investment horizon IShares SP is expected to generate 1.29 times less return on investment than Columbia Research. But when comparing it to its historical volatility, iShares SP 500 is 1.09 times less risky than Columbia Research. It trades about 0.24 of its potential returns per unit of risk. Columbia Research Enhanced is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,562 in Columbia Research Enhanced on August 29, 2024 and sell it today you would earn a total of 134.00 from holding Columbia Research Enhanced or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares SP 500 vs. Columbia Research Enhanced
Performance |
| Timeline |
| iShares SP 500 |
| Columbia Research |
IShares SP and Columbia Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SP and Columbia Research
The main advantage of trading using opposite IShares SP and Columbia Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SP position performs unexpectedly, Columbia Research 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 Research will offset losses from the drop in Columbia Research's long position.| IShares SP vs. iShares SP 500 | IShares SP vs. iShares SP Mid Cap | IShares SP vs. iShares SP Small Cap | IShares SP vs. iShares SP Mid Cap |
| Columbia Research vs. QRAFT AI Enhanced Large | Columbia Research vs. Vesper Large Cap | Columbia Research vs. Columbia ETF Trust |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |