Correlation Between Columbia Pacific/asia and Catalyst/map Global
Can any of the company-specific risk be diversified away by investing in both Columbia Pacific/asia and Catalyst/map Global 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 Columbia Pacific/asia and Catalyst/map Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Pacificasia Fund and Catalystmap Global Equity, you can compare the effects of market volatilities on Columbia Pacific/asia and Catalyst/map Global 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 Columbia Pacific/asia with a short position of Catalyst/map Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Pacific/asia and Catalyst/map Global.
Diversification Opportunities for Columbia Pacific/asia and Catalyst/map Global
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Columbia and Catalyst/map is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Pacificasia Fund and Catalystmap Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmap Global Equity and Columbia Pacific/asia 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 Columbia Pacificasia Fund are associated (or correlated) with Catalyst/map Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmap Global Equity has no effect on the direction of Columbia Pacific/asia i.e., Columbia Pacific/asia and Catalyst/map Global go up and down completely randomly.
Pair Corralation between Columbia Pacific/asia and Catalyst/map Global
Assuming the 90 days horizon Columbia Pacific/asia is expected to generate 1.65 times less return on investment than Catalyst/map Global. In addition to that, Columbia Pacific/asia is 1.38 times more volatile than Catalystmap Global Equity. It trades about 0.02 of its total potential returns per unit of risk. Catalystmap Global Equity is currently generating about 0.04 per unit of volatility. If you would invest 1,703 in Catalystmap Global Equity on April 25, 2025 and sell it today you would earn a total of 248.00 from holding Catalystmap Global Equity or generate 14.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 79.55% |
Values | Daily Returns |
Columbia Pacificasia Fund vs. Catalystmap Global Equity
Performance |
Timeline |
Columbia Pacific/asia |
Catalystmap Global Equity |
Columbia Pacific/asia and Catalyst/map Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Columbia Pacific/asia and Catalyst/map Global
The main advantage of trading using opposite Columbia Pacific/asia and Catalyst/map Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Pacific/asia position performs unexpectedly, Catalyst/map Global 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 Catalyst/map Global will offset losses from the drop in Catalyst/map Global's long position.Columbia Pacific/asia vs. Vy T Rowe | Columbia Pacific/asia vs. Allianzgi Diversified Income | Columbia Pacific/asia vs. Columbia Diversified Equity | Columbia Pacific/asia vs. Schwab Small Cap Index |
Catalyst/map Global vs. Morgan Stanley Institutional | Catalyst/map Global vs. Wt Mutual Fund | Catalyst/map Global vs. Aig Government Money | Catalyst/map Global vs. Sei Daily Income |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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