Correlation Between Columbia Select and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Columbia Select and Mainstay Convertible 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 Select and Mainstay Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Select Large and Mainstay Vertible Fund, you can compare the effects of market volatilities on Columbia Select and Mainstay Convertible 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 Select with a short position of Mainstay Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Select and Mainstay Convertible.
Diversification Opportunities for Columbia Select and Mainstay Convertible
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Columbia and Mainstay is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Select Large and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible and Columbia Select 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 Select Large are associated (or correlated) with Mainstay Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Convertible has no effect on the direction of Columbia Select i.e., Columbia Select and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Columbia Select and Mainstay Convertible
Assuming the 90 days horizon Columbia Select Large is expected to generate 1.68 times more return on investment than Mainstay Convertible. However, Columbia Select is 1.68 times more volatile than Mainstay Vertible Fund. It trades about -0.01 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about -0.02 per unit of risk. If you would invest 2,292 in Columbia Select Large on November 8, 2024 and sell it today you would lose (17.00) from holding Columbia Select Large or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.33% |
| Values | Daily Returns |
Columbia Select Large vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Columbia Select Large |
| Mainstay Convertible |
Columbia Select and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Select and Mainstay Convertible
The main advantage of trading using opposite Columbia Select and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Select position performs unexpectedly, Mainstay Convertible 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 Mainstay Convertible will offset losses from the drop in Mainstay Convertible's long position.| Columbia Select vs. Columbia Vertible Securities | Columbia Select vs. Columbia Large Cap | Columbia Select vs. Columbia Large Cap | Columbia Select vs. Columbia Capital Allocation |
| Mainstay Convertible vs. Victory Rs Partners | Mainstay Convertible vs. Lsv Small Cap | Mainstay Convertible vs. Mutual Of America | Mainstay Convertible vs. Small Cap Value |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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