Correlation Between Western Asset and Columbia Large
Can any of the company-specific risk be diversified away by investing in both Western Asset and Columbia Large 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 Large 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 Large Cap, you can compare the effects of market volatilities on Western Asset and Columbia Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Columbia Large.
Diversification Opportunities for Western Asset and Columbia Large
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Columbia is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Diversified and Columbia Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Large Cap 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 Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Large Cap has no effect on the direction of Western Asset i.e., Western Asset and Columbia Large go up and down completely randomly.
Pair Corralation between Western Asset and Columbia Large
Assuming the 90 days horizon Western Asset is expected to generate 36.76 times less return on investment than Columbia Large. But when comparing it to its historical volatility, Western Asset Diversified is 3.07 times less risky than Columbia Large. It trades about 0.01 of its potential returns per unit of risk. Columbia Large Cap is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 4,334 in Columbia Large Cap on September 4, 2024 and sell it today you would earn a total of 1,094 from holding Columbia Large Cap or generate 25.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 30.77% |
| Values | Daily Returns |
Western Asset Diversified vs. Columbia Large Cap
Performance |
| Timeline |
| Western Asset Diversified |
| Columbia Large Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Asset and Columbia Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Columbia Large
The main advantage of trading using opposite Western Asset and Columbia Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Columbia Large 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 Large will offset losses from the drop in Columbia Large's long position.| Western Asset vs. Dreyfusstandish Global Fixed | Western Asset vs. Franklin Mutual Global | Western Asset vs. Commonwealth Global Fund | Western Asset vs. Scharf Global Opportunity |
| Columbia Large vs. Virtus Real Estate | Columbia Large vs. Jhancock Real Estate | Columbia Large vs. Real Estate Ultrasector | Columbia Large vs. Simt Real Estate |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |