Correlation Between SPDR Portfolio and Columbia ETF
Can any of the company-specific risk be diversified away by investing in both SPDR Portfolio and Columbia ETF 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 SPDR Portfolio and Columbia ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Portfolio SP and Columbia ETF Trust, you can compare the effects of market volatilities on SPDR Portfolio and Columbia ETF 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 SPDR Portfolio with a short position of Columbia ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Portfolio and Columbia ETF.
Diversification Opportunities for SPDR Portfolio and Columbia ETF
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and Columbia is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Portfolio SP and Columbia ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia ETF Trust and SPDR Portfolio 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 SPDR Portfolio SP are associated (or correlated) with Columbia ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia ETF Trust has no effect on the direction of SPDR Portfolio i.e., SPDR Portfolio and Columbia ETF go up and down completely randomly.
Pair Corralation between SPDR Portfolio and Columbia ETF
Given the investment horizon of 90 days SPDR Portfolio is expected to generate 1.01 times less return on investment than Columbia ETF. In addition to that, SPDR Portfolio is 1.03 times more volatile than Columbia ETF Trust. It trades about 0.11 of its total potential returns per unit of risk. Columbia ETF Trust is currently generating about 0.11 per unit of volatility. If you would invest 2,897 in Columbia ETF Trust on November 3, 2024 and sell it today you would earn a total of 658.00 from holding Columbia ETF Trust or generate 22.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Portfolio SP vs. Columbia ETF Trust
Performance |
| Timeline |
| SPDR Portfolio SP |
| Columbia ETF Trust |
SPDR Portfolio and Columbia ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Portfolio and Columbia ETF
The main advantage of trading using opposite SPDR Portfolio and Columbia ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Portfolio position performs unexpectedly, Columbia ETF 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 ETF will offset losses from the drop in Columbia ETF's long position.| SPDR Portfolio vs. SPDR Portfolio SP | SPDR Portfolio vs. Invesco NASDAQ 100 | SPDR Portfolio vs. SPDR Portfolio SP | SPDR Portfolio vs. SPDR Portfolio SP |
| Columbia ETF vs. Columbia Research Enhanced | Columbia ETF vs. RiverFront Dynamic Flex Cap | Columbia ETF vs. PIMCO RAFI ESG | Columbia ETF vs. DBX ETF 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |