Correlation Between SSGA Active and Columbia Multi
Can any of the company-specific risk be diversified away by investing in both SSGA Active and Columbia Multi 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 SSGA Active and Columbia Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSGA Active Trust and Columbia Multi Sector Municipal, you can compare the effects of market volatilities on SSGA Active and Columbia Multi 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 SSGA Active with a short position of Columbia Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSGA Active and Columbia Multi.
Diversification Opportunities for SSGA Active and Columbia Multi
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SSGA and Columbia is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding SSGA Active Trust and Columbia Multi Sector Municipa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Multi Sector and SSGA Active 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 SSGA Active Trust are associated (or correlated) with Columbia Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Multi Sector has no effect on the direction of SSGA Active i.e., SSGA Active and Columbia Multi go up and down completely randomly.
Pair Corralation between SSGA Active and Columbia Multi
Given the investment horizon of 90 days SSGA Active Trust is expected to generate 0.79 times more return on investment than Columbia Multi. However, SSGA Active Trust is 1.26 times less risky than Columbia Multi. It trades about 0.1 of its potential returns per unit of risk. Columbia Multi Sector Municipal is currently generating about 0.04 per unit of risk. If you would invest 2,336 in SSGA Active Trust on August 24, 2024 and sell it today you would earn a total of 262.00 from holding SSGA Active Trust or generate 11.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSGA Active Trust vs. Columbia Multi Sector Municipa
Performance |
| Timeline |
| SSGA Active Trust |
| Columbia Multi Sector |
SSGA Active and Columbia Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSGA Active and Columbia Multi
The main advantage of trading using opposite SSGA Active and Columbia Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSGA Active position performs unexpectedly, Columbia Multi 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 Multi will offset losses from the drop in Columbia Multi's long position.| SSGA Active vs. SPDR Bloomberg Barclays | SSGA Active vs. SPDR SSGA Fixed | SSGA Active vs. SPDR DoubleLine Short | SSGA Active vs. SPDR Portfolio Corporate |
| Columbia Multi vs. BlackRock Intermediate Muni | Columbia Multi vs. SSGA Active Trust | Columbia Multi vs. SPDR MarketAxess Investment | Columbia Multi vs. SSGA Active Trust |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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