Correlation Between Ambrus Core and Columbia Floating
Can any of the company-specific risk be diversified away by investing in both Ambrus Core and Columbia Floating 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 Ambrus Core and Columbia Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambrus Core Bond and Columbia Floating Rate, you can compare the effects of market volatilities on Ambrus Core and Columbia Floating 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 Ambrus Core with a short position of Columbia Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and Columbia Floating.
Diversification Opportunities for Ambrus Core and Columbia Floating
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ambrus and Columbia is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Columbia Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Floating Rate and Ambrus Core 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 Ambrus Core Bond are associated (or correlated) with Columbia Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Floating Rate has no effect on the direction of Ambrus Core i.e., Ambrus Core and Columbia Floating go up and down completely randomly.
Pair Corralation between Ambrus Core and Columbia Floating
Assuming the 90 days horizon Ambrus Core Bond is expected to generate 6.96 times more return on investment than Columbia Floating. However, Ambrus Core is 6.96 times more volatile than Columbia Floating Rate. It trades about 0.29 of its potential returns per unit of risk. Columbia Floating Rate is currently generating about 0.45 per unit of risk. If you would invest 992.00 in Ambrus Core Bond on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Ambrus Core Bond or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambrus Core Bond vs. Columbia Floating Rate
Performance |
| Timeline |
| Ambrus Core Bond |
| Columbia Floating Rate |
Ambrus Core and Columbia Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and Columbia Floating
The main advantage of trading using opposite Ambrus Core and Columbia Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core position performs unexpectedly, Columbia Floating 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 Floating will offset losses from the drop in Columbia Floating's long position.| Ambrus Core vs. Loomis Sayles Inflation | Ambrus Core vs. Simt Multi Asset Inflation | Ambrus Core vs. Ab Bond Inflation | Ambrus Core vs. Schwab Treasury Inflation |
| Columbia Floating vs. Columbia Porate Income | Columbia Floating vs. Columbia Ultra Short | Columbia Floating vs. Columbia Treasury Index | Columbia Floating vs. Multi Manager Directional Alternative |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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