Correlation Between Western Asset and Columbia Porate
Can any of the company-specific risk be diversified away by investing in both Western Asset and Columbia Porate 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 Western Asset and Columbia Porate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Diversified and Columbia Porate Income, you can compare the effects of market volatilities on Western Asset and Columbia Porate 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 Western Asset with a short position of Columbia Porate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Columbia Porate.
Diversification Opportunities for Western Asset and Columbia Porate
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Western and Columbia is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Diversified and Columbia Porate Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Porate Income and Western Asset 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 Western Asset Diversified are associated (or correlated) with Columbia Porate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Porate Income has no effect on the direction of Western Asset i.e., Western Asset and Columbia Porate go up and down completely randomly.
Pair Corralation between Western Asset and Columbia Porate
If you would invest 893.00 in Columbia Porate Income on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Columbia Porate Income or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
Western Asset Diversified vs. Columbia Porate Income
Performance |
| Timeline |
| Western Asset Diversified |
| Columbia Porate Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Asset and Columbia Porate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Columbia Porate
The main advantage of trading using opposite Western Asset and Columbia Porate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Columbia Porate 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 Porate will offset losses from the drop in Columbia Porate's long position.| Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard 500 Index | Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard Total Stock |
| Columbia Porate vs. Arrow Managed Futures | Columbia Porate vs. Aqr Managed Futures | Columbia Porate vs. Short Duration Inflation | Columbia Porate vs. Guidepath Managed Futures |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |