Correlation Between NYSE Composite and Columbia Care
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Columbia Care 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 NYSE Composite and Columbia Care into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Columbia Care, you can compare the effects of market volatilities on NYSE Composite and Columbia Care 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 NYSE Composite with a short position of Columbia Care. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Columbia Care.
Diversification Opportunities for NYSE Composite and Columbia Care
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Columbia is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Columbia Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Care and NYSE Composite 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 NYSE Composite are associated (or correlated) with Columbia Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Care has no effect on the direction of NYSE Composite i.e., NYSE Composite and Columbia Care go up and down completely randomly.
Pair Corralation between NYSE Composite and Columbia Care
If you would invest 1,911,944 in NYSE Composite on October 21, 2024 and sell it today you would earn a total of 48,793 from holding NYSE Composite or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
NYSE Composite vs. Columbia Care
Performance |
| Timeline |
NYSE Composite and Columbia Care Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Columbia Care
Pair trading matchups for Columbia Care
Pair Trading with NYSE Composite and Columbia Care
The main advantage of trading using opposite NYSE Composite and Columbia Care positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Columbia Care 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 Care will offset losses from the drop in Columbia Care's long position.| NYSE Composite vs. National Health Investors | NYSE Composite vs. Arbor Realty Trust | NYSE Composite vs. Canaf Investments | NYSE Composite vs. Freedom Holding Corp |
| Columbia Care vs. Green Thumb Industries | Columbia Care vs. AYR Strategies Class | Columbia Care vs. Trulieve Cannabis Corp | Columbia Care vs. Goodness Growth Holdings |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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