Correlation Between Columbia Convertible and Barrow Hanley
Can any of the company-specific risk be diversified away by investing in both Columbia Convertible and Barrow Hanley 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 Convertible and Barrow Hanley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Convertible Securities and Barrow Hanley Floating, you can compare the effects of market volatilities on Columbia Convertible and Barrow Hanley 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 Convertible with a short position of Barrow Hanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Convertible and Barrow Hanley.
Diversification Opportunities for Columbia Convertible and Barrow Hanley
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Columbia and Barrow is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Convertible Securitie and Barrow Hanley Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrow Hanley Floating and Columbia Convertible 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 Convertible Securities are associated (or correlated) with Barrow Hanley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrow Hanley Floating has no effect on the direction of Columbia Convertible i.e., Columbia Convertible and Barrow Hanley go up and down completely randomly.
Pair Corralation between Columbia Convertible and Barrow Hanley
Assuming the 90 days horizon Columbia Convertible Securities is expected to generate 9.39 times more return on investment than Barrow Hanley. However, Columbia Convertible is 9.39 times more volatile than Barrow Hanley Floating. It trades about 0.15 of its potential returns per unit of risk. Barrow Hanley Floating is currently generating about 0.54 per unit of risk. If you would invest 2,199 in Columbia Convertible Securities on October 24, 2024 and sell it today you would earn a total of 38.00 from holding Columbia Convertible Securities or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Columbia Convertible Securitie vs. Barrow Hanley Floating
Performance |
| Timeline |
| Columbia Convertible |
| Barrow Hanley Floating |
Columbia Convertible and Barrow Hanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Convertible and Barrow Hanley
The main advantage of trading using opposite Columbia Convertible and Barrow Hanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Convertible position performs unexpectedly, Barrow Hanley 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 Barrow Hanley will offset losses from the drop in Barrow Hanley's long position.| Columbia Convertible vs. Commonwealth Real Estate | Columbia Convertible vs. Prudential Real Estate | Columbia Convertible vs. Rems Real Estate | Columbia Convertible vs. Fidelity Real Estate |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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