Correlation Between Columbia ETF and IShares IBoxx
Can any of the company-specific risk be diversified away by investing in both Columbia ETF and IShares IBoxx 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 ETF and IShares IBoxx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia ETF Trust and iShares iBoxx Investment, you can compare the effects of market volatilities on Columbia ETF and IShares IBoxx 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 ETF with a short position of IShares IBoxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia ETF and IShares IBoxx.
Diversification Opportunities for Columbia ETF and IShares IBoxx
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Columbia and IShares is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Columbia ETF Trust and iShares iBoxx Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares iBoxx Investment and Columbia ETF 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 ETF Trust are associated (or correlated) with IShares IBoxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares iBoxx Investment has no effect on the direction of Columbia ETF i.e., Columbia ETF and IShares IBoxx go up and down completely randomly.
Pair Corralation between Columbia ETF and IShares IBoxx
Given the investment horizon of 90 days Columbia ETF Trust is expected to generate 232.75 times more return on investment than IShares IBoxx. However, Columbia ETF is 232.75 times more volatile than iShares iBoxx Investment. It trades about 0.13 of its potential returns per unit of risk. iShares iBoxx Investment is currently generating about 0.04 per unit of risk. If you would invest 0.00 in Columbia ETF Trust on September 3, 2024 and sell it today you would earn a total of 2,020 from holding Columbia ETF Trust or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 12.73% |
| Values | Daily Returns |
Columbia ETF Trust vs. iShares iBoxx Investment
Performance |
| Timeline |
| Columbia ETF Trust |
| iShares iBoxx Investment |
Columbia ETF and IShares IBoxx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia ETF and IShares IBoxx
The main advantage of trading using opposite Columbia ETF and IShares IBoxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia ETF position performs unexpectedly, IShares IBoxx 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 IBoxx will offset losses from the drop in IShares IBoxx's long position.| Columbia ETF vs. iShares iBoxx Investment | Columbia ETF vs. SPDR Bloomberg High | Columbia ETF vs. iShares TIPS Bond | Columbia ETF vs. iShares 20 Year |
| IShares IBoxx vs. iShares iBoxx High | IShares IBoxx vs. iShares 1 3 Year | IShares IBoxx vs. iShares TIPS Bond | IShares IBoxx vs. iShares 7 10 Year |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |