Correlation Between Columbia Multi and IShares JP
Can any of the company-specific risk be diversified away by investing in both Columbia Multi and IShares JP 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 Multi and IShares JP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Multi Sector Municipal and iShares JP Morgan, you can compare the effects of market volatilities on Columbia Multi and IShares JP 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 Multi with a short position of IShares JP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Multi and IShares JP.
Diversification Opportunities for Columbia Multi and IShares JP
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Columbia and IShares is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Multi Sector Municipa and iShares JP Morgan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares JP Morgan and Columbia Multi 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 Multi Sector Municipal are associated (or correlated) with IShares JP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares JP Morgan has no effect on the direction of Columbia Multi i.e., Columbia Multi and IShares JP go up and down completely randomly.
Pair Corralation between Columbia Multi and IShares JP
Given the investment horizon of 90 days Columbia Multi Sector Municipal is expected to generate 1.09 times more return on investment than IShares JP. However, Columbia Multi is 1.09 times more volatile than iShares JP Morgan. It trades about 0.19 of its potential returns per unit of risk. iShares JP Morgan is currently generating about 0.12 per unit of risk. If you would invest 2,035 in Columbia Multi Sector Municipal on August 31, 2024 and sell it today you would earn a total of 41.00 from holding Columbia Multi Sector Municipal or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Columbia Multi Sector Municipa vs. iShares JP Morgan
Performance |
| Timeline |
| Columbia Multi Sector |
| iShares JP Morgan |
Columbia Multi and IShares JP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Multi and IShares JP
The main advantage of trading using opposite Columbia Multi and IShares JP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Multi position performs unexpectedly, IShares JP 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 IShares JP will offset losses from the drop in IShares JP's long position.| Columbia Multi vs. iShares JP Morgan | Columbia Multi vs. iShares iBoxx Investment | Columbia Multi vs. SPDR Nuveen Bloomberg | Columbia Multi vs. iShares MBS ETF |
| IShares JP vs. Invesco Emerging Markets | IShares JP vs. iShares JP Morgan | IShares JP vs. SPDR Bloomberg Barclays | IShares JP vs. SPDR DoubleLine Emerging |
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
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |