Columbia Diversified Fixed ETF Volatility

DIAL ETF  USD 18.22  0.01  0.05%   
Columbia Diversified's historical price variability is summarized here, from standard deviation to drawdown and value-at-risk. The ETF has a long-term beta of 1.09, meaning it generally moves in line with the broader market. The ETF shows minimal price volatility over the last 3 months.

Sharpe Ratio = -0.0635

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Columbia Diversified Fixed posted a Market Risk Adjusted Performance of -0.1%, a Risk of 0.35, and a Risk Adjusted Performance of -0.1% for the reported period. Based on monthly moving averages, the ETF is not performing at its full potential.
Key indicators related to Columbia Diversified's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity

Key risk metrics for Columbia Diversified (3 Months):

 Beta
0.24
 Alpha
-0.03
 Risk
0.35
 Sharpe Ratio
-0.06
 Expected Return
-0.02

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Sensitivity To Market

Columbia Diversified beta coefficient measures the volatility of Columbia ETF relative to the systematic risk of the broad market benchmark. A beta of 0.24 indicates the degree of sensitivity to market-wide movements. Current total volatility is approximately 0.35%. Columbia Diversified Fixed has shown noticeable price swings over the selected period. Downside deviation is about 0.0% and standard deviation is about 0.35%, which summarize how widely returns have moved. ETF variability increases when the underlying basket is less liquid, making spreads wider and NAV alignment slower. Premium/discount to NAV is often expressed as (Price − NAV) / NAV × 100 when NAV is available.
Current 90-day Columbia Diversified correlation with market (Dow Jones Industrial)
α-0.0313   β0.24
3 Months Beta |Columbia Diversified Demand Trend
Current 90-day Columbia Diversified correlation with market (Dow Jones Industrial)

Downside Risk

Standard deviation measures how far Columbia returns deviate from the historical mean and remains a primary indicator of total price volatility. A large standard deviation signals wide price swings; a small one signals relative stability.
Standard Deviation
    
  0.35  
It is essential to understand the difference between upside risk and downside risk for Columbia Diversified. Total volatility includes favorable moves, while downside deviation isolates the loss risk in Columbia Diversified's daily returns. Columbia Diversified Fixed posted a Maximum Drawdown of 1.37 for the reported period.

ETF Volatility Analysis

Volatility refers to the frequency at which Columbia Diversified ETF price increases or decreases within a specified period. It is generally measured from either the standard deviation or variance between returns from that same ETF.
Transformation
This analysis covers sixty-one data points across the selected time horizon. The Average Price transformation calculates the mean of Columbia Diversified's open, high, low, and close for each trading period. By incorporating all four price components equally, it provides a balanced representation of each period's trading activity. Compared to using the closing price alone, the average price reduces the influence of end-of-day positioning and can serve as a smoother input for other technical indicators.

Projected Return Density Against Market

Given a 90-day horizon, Columbia Diversified has a beta of 0.2385 suggesting as returns on the market go up, Columbia Diversified's average returns tend to increase less than the benchmark. However, during a bear market, the loss from holding Columbia Diversified Fixed tends to be smaller as well.
Columbia Diversified is exposed to both systematic and unsystematic risk. Systematic risk reflects broader ETF market movements, while company or sector-specific developments represent nonmarket drivers. Diversification may reduce specific risk, but market exposure remains. Beta and standard deviation help quantify volatility. Columbia Diversified Fixed posted a Mean Deviation of 0.28 and a Standard Deviation of 0.35 for the reported period.
Columbia Diversified Fixed has a negative alpha, implying that risk has not been adequately compensated by returns. DIAL is significantly underperforming the Dow Jones Industrial.
   Predicted Return Distribution   
       Density  
Columbia Diversified's volatility is typically evaluated with standard deviation and beta. Standard deviation reflects how far Columbia Diversified's returns usually move from the mean over the selected horizon.

What Drives Columbia Diversified's Price Volatility?

Holdings and Allocation

Changes in underlying holdings, sector weights, and rebalancing activity within the Multisector Bond category can influence Columbia Diversified's price dispersion even when broad indices are stable.

Political and Economic Environment

Rates, inflation expectations, and policy headlines can shift discount rates and risk appetite for Columbia Diversified.

Columbia Diversified's Fund-Specific Factors

Flows in and out of the fund, tracking error, and premium-to-NAV shifts are common drivers of short-term price movement in Columbia Diversified's shares.

ETF Risk Measures

Given a 90-day horizon, the coefficient of variation of Columbia Diversified is -1575.79. The daily returns are distributed with a variance of 0.12 and standard deviation of 0.35. The mean deviation of Columbia Diversified Fixed is currently at 0.29. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.95
α
Alpha over Dow Jones
-0.0313
β
Beta against Dow Jones0.24
σ
Overall volatility
0.35
Ir
Information ratio -0.1317

ETF Return Volatility

Columbia Diversified historical daily return volatility represents how much of Columbia Diversified ETF's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The exchange-traded fund reported 0.3516% volatility on return distribution over a 90-day investment horizon. By contrast, Dow Jones Industrial reported 0.9314% volatility on return distribution over a 90-day investment horizon.
 Performance 
       Timeline  

Related Correlations Analysis


Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

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High negative correlations

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Columbia Diversified Constituents Risk-Adjusted Indicators

Strong recent returns in Columbia ETF do not always mean Columbia Diversified ETF is outperforming peers on business quality. Risk-adjusted metrics help compare Columbia Diversified's efficiency and downside exposure against peers on a like-for-like basis. These indicators are quantitative in nature and measure volatility and risk-adjusted expected returns across different positions.

Risk Metrics, Assumptions & Methodology

Return dispersion for Columbia Diversified quantifies how far daily or periodic returns deviate from the average across the measurement window. Higher dispersion implies a wider range of plausible outcomes for any given holding period.

Columbia Diversified Fixed values are built from fund disclosures and market reference feeds, with reporting definitions aligned before display. Volatility and downside metrics are estimated from historical return dispersion.

Editorial review and methodology oversight provided by: Ellen Johnson, Member of Macroaxis Editorial Board

Volatility Profile Summary

Recent data suggests that Columbia Diversified Fixed is less volatile than Dow Jones Industrial by approximately 2.66x over the selected horizon. This differential reflects the relative dispersion of returns and frames how each asset responds to broader market conditions. Observed price behavior indicates modest directional movement within the current volatility regime. Across the current 90-day horizon, that places the security below 3% of the broader equity and portfolio universe on a pure volatility basis. This positioning reflects relative dispersion compared to peers rather than extreme instability.

Columbia Diversified Fixed with characteristics aligned to broad market upside participation. This directional read frames the latest price swing through a simple momentum and follow-through lens. It works best as a directional cue rather than as a standalone forecast. a normal upward fluctuation. Return distributions derived from historical modeling outline a range of potential outcomes over the selected 90-day horizon. View Columbia Diversified probability analysis.

Poor diversification
Across the chosen horizon, Columbia Diversified and Dow Jones show a correlation of 0.75 and fall into the Poor diversification bucket. In portfolio terms, the overlap shows how much shared movement remains after combining both positions.

Additional Risk Indicators

A broader risk-indicator set for Columbia Diversified Fixed extends the analysis beyond standard volatility and risk measures. This is most informative when assessing whether the current opportunity is being compensated with reasonable risk.

Columbia Diversified Suggested Diversification Pairs

A paired position built around Columbia Diversified Fixed reduces directional market exposure while expressing a relative-value view. Pair trading is less about prediction in isolation and more about identifying relative mispricing between related positions.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Columbia Diversified as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Columbia Diversified's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Columbia Diversified's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Columbia Diversified Fixed.

More Resources for Columbia ETF Analysis

The gap between Columbia Diversified's market price and NAV reflects supply-demand dynamics in the secondary market. The relationship between Columbia Diversified's cost structure, holdings, and tracking accuracy shapes the aggregate assessment.
The distinction between Columbia Diversified's trading price and NAV is an important analytical consideration. These factors add context beyond price levels visible on exchanges.