Correlation Between City National and Columbia Integrated
Can any of the company-specific risk be diversified away by investing in both City National and Columbia Integrated 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 City National and Columbia Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City National Rochdale and Columbia Integrated Large, you can compare the effects of market volatilities on City National and Columbia Integrated 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 City National with a short position of Columbia Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of City National and Columbia Integrated.
Diversification Opportunities for City National and Columbia Integrated
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between City and Columbia is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding City National Rochdale and Columbia Integrated Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Integrated Large and City National 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 City National Rochdale are associated (or correlated) with Columbia Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Integrated Large has no effect on the direction of City National i.e., City National and Columbia Integrated go up and down completely randomly.
Pair Corralation between City National and Columbia Integrated
Assuming the 90 days horizon City National is expected to generate 1.45 times less return on investment than Columbia Integrated. But when comparing it to its historical volatility, City National Rochdale is 6.42 times less risky than Columbia Integrated. It trades about 0.25 of its potential returns per unit of risk. Columbia Integrated Large is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,298 in Columbia Integrated Large on September 19, 2024 and sell it today you would earn a total of 82.00 from holding Columbia Integrated Large or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 25.66% |
| Values | Daily Returns |
City National Rochdale vs. Columbia Integrated Large
Performance |
| Timeline |
| City National Rochdale |
| Columbia Integrated Large |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
City National and Columbia Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City National and Columbia Integrated
The main advantage of trading using opposite City National and Columbia Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City National position performs unexpectedly, Columbia Integrated 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 Integrated will offset losses from the drop in Columbia Integrated's long position.| City National vs. American Funds Inflation | City National vs. Altegris Futures Evolution | City National vs. Deutsche Global Inflation | City National vs. Guidepath Managed Futures |
| Columbia Integrated vs. Msift High Yield | Columbia Integrated vs. Inverse High Yield | Columbia Integrated vs. Guggenheim High Yield | Columbia Integrated vs. City National Rochdale |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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