Correlation Between Kratos Defense and Columbia Global

Can any of the company-specific risk be diversified away by investing in both Kratos Defense and Columbia 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 Kratos Defense and Columbia Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kratos Defense Security and Columbia Global Dividend, you can compare the effects of market volatilities on Kratos Defense and Columbia 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 Kratos Defense with a short position of Columbia Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kratos Defense and Columbia Global.

Diversification Opportunities for Kratos Defense and Columbia Global

-0.25

Correlation Coefficient

Kratos Defense  Columbia Global

Very good diversification

The 3 months correlation between Kratos and Columbia is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kratos Defense Security and Columbia Global Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Global Dividend and Kratos Defense 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 Kratos Defense Security are associated (or correlated) with Columbia Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Global Dividend has no effect on the direction of Kratos Defense i.e., Kratos Defense and Columbia Global go up and down completely randomly.

Pair Corralation between Kratos Defense and Columbia Global

Given the investment horizon of 90 days Kratos Defense Security is expected to under-perform the Columbia Global. In addition to that, Kratos Defense is 5.37 times more volatile than Columbia Global Dividend. It trades about -0.1 of its total potential returns per unit of risk. Columbia Global Dividend is currently generating about 0.2 per unit of volatility. If you would invest  2,186  in Columbia Global Dividend on October 8, 2025 and sell it today you would earn a total of  204.00  from holding Columbia Global Dividend or generate 9.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Kratos Defense Security  vs.  Columbia Global Dividend

Kratos Defense Security

Risk-Adjusted Performance

Weakest

Over the last 90 days Kratos Defense Security has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Columbia Global Dividend

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Columbia Global Dividend are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Columbia Global may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Pair Trading with Kratos Defense and Columbia Global

The main advantage of trading using opposite Kratos Defense and Columbia Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kratos Defense position performs unexpectedly, Columbia 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 Columbia Global will offset losses from the drop in Columbia Global's long position.

The idea behind Kratos Defense Security and Columbia Global Dividend pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.