Correlation Between Astor Star and Columbia Select
Can any of the company-specific risk be diversified away by investing in both Astor Star and Columbia Select 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 Astor Star and Columbia Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Star Fund and Columbia Select Large Cap, you can compare the effects of market volatilities on Astor Star and Columbia Select 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 Astor Star with a short position of Columbia Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Star and Columbia Select.
Diversification Opportunities for Astor Star and Columbia Select
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Astor and Columbia is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Astor Star Fund and Columbia Select Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Select Large and Astor Star 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 Astor Star Fund are associated (or correlated) with Columbia Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Select Large has no effect on the direction of Astor Star i.e., Astor Star and Columbia Select go up and down completely randomly.
Pair Corralation between Astor Star and Columbia Select
Assuming the 90 days horizon Astor Star is expected to generate 1.64 times less return on investment than Columbia Select. But when comparing it to its historical volatility, Astor Star Fund is 1.72 times less risky than Columbia Select. It trades about 0.32 of its potential returns per unit of risk. Columbia Select Large Cap is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 3,393 in Columbia Select Large Cap on April 22, 2025 and sell it today you would earn a total of 493.00 from holding Columbia Select Large Cap or generate 14.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Star Fund vs. Columbia Select Large Cap
Performance |
| Timeline |
| Astor Star Fund |
| Columbia Select Large |
Astor Star and Columbia Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Star and Columbia Select
The main advantage of trading using opposite Astor Star and Columbia Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Star position performs unexpectedly, Columbia Select 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 Select will offset losses from the drop in Columbia Select's long position.| Astor Star vs. Astor Star Fund | Astor Star vs. Astor Star Fund | Astor Star vs. Astor Longshort Fund | Astor Star vs. Nasdaq 100 Fund Class |
| Columbia Select vs. Columbia Select Large Cap | Columbia Select vs. Calvert Large Cap | Columbia Select vs. Federated Mdt Large |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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