Correlation Between Multi Manager and Columbia Treasury
Can any of the company-specific risk be diversified away by investing in both Multi Manager and Columbia Treasury 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 Multi Manager and Columbia Treasury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Manager Directional Alternative and Columbia Treasury Index, you can compare the effects of market volatilities on Multi Manager and Columbia Treasury 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 Multi Manager with a short position of Columbia Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Manager and Columbia Treasury.
Diversification Opportunities for Multi Manager and Columbia Treasury
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Multi and Columbia is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager Directional Alte and Columbia Treasury Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Treasury Index and Multi Manager 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 Multi Manager Directional Alternative are associated (or correlated) with Columbia Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Treasury Index has no effect on the direction of Multi Manager i.e., Multi Manager and Columbia Treasury go up and down completely randomly.
Pair Corralation between Multi Manager and Columbia Treasury
Assuming the 90 days horizon Multi Manager Directional Alternative is expected to generate 1.88 times more return on investment than Columbia Treasury. However, Multi Manager is 1.88 times more volatile than Columbia Treasury Index. It trades about 0.22 of its potential returns per unit of risk. Columbia Treasury Index is currently generating about 0.07 per unit of risk. If you would invest 779.00 in Multi Manager Directional Alternative on June 7, 2025 and sell it today you would earn a total of 14.00 from holding Multi Manager Directional Alternative or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Manager Directional Alte vs. Columbia Treasury Index
Performance |
| Timeline |
| Multi Manager Direct |
| Columbia Treasury Index |
Multi Manager and Columbia Treasury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Manager and Columbia Treasury
The main advantage of trading using opposite Multi Manager and Columbia Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Manager position performs unexpectedly, Columbia Treasury 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 Treasury will offset losses from the drop in Columbia Treasury's long position.| Multi Manager vs. Tax Free Conservative Income | Multi Manager vs. Massmutual Premier Diversified | Multi Manager vs. Putnam Diversified Income | Multi Manager vs. Victory Diversified Stock |
| Columbia Treasury vs. Columbia Porate Income | Columbia Treasury vs. Columbia Ultra Short | Columbia Treasury vs. Multi Manager Directional Alternative | Columbia Treasury vs. Columbia Small Cap |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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