Correlation Between Amg Timessquare and Columbia Small
Can any of the company-specific risk be diversified away by investing in both Amg Timessquare and Columbia Small 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 Amg Timessquare and Columbia Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Timessquare Mid and Columbia Small Cap, you can compare the effects of market volatilities on Amg Timessquare and Columbia Small 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 Amg Timessquare with a short position of Columbia Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Timessquare and Columbia Small.
Diversification Opportunities for Amg Timessquare and Columbia Small
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amg and Columbia is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Amg Timessquare Mid and Columbia Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Small Cap and Amg Timessquare 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 Amg Timessquare Mid are associated (or correlated) with Columbia Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Small Cap has no effect on the direction of Amg Timessquare i.e., Amg Timessquare and Columbia Small go up and down completely randomly.
Pair Corralation between Amg Timessquare and Columbia Small
Assuming the 90 days horizon Amg Timessquare Mid is expected to under-perform the Columbia Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Amg Timessquare Mid is 1.18 times less risky than Columbia Small. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Columbia Small Cap is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,240 in Columbia Small Cap on August 17, 2025 and sell it today you would earn a total of 149.00 from holding Columbia Small Cap or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Timessquare Mid vs. Columbia Small Cap
Performance |
| Timeline |
| Amg Timessquare Mid |
| Columbia Small Cap |
Amg Timessquare and Columbia Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Timessquare and Columbia Small
The main advantage of trading using opposite Amg Timessquare and Columbia Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Timessquare position performs unexpectedly, Columbia Small 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 Small will offset losses from the drop in Columbia Small's long position.| Amg Timessquare vs. Columbia Select Large | Amg Timessquare vs. T Rowe Price | Amg Timessquare vs. Goldman Sachs Mid | Amg Timessquare vs. Hennessy Focus Fund |
| Columbia Small vs. Lazard International Strategic | Columbia Small vs. Lazard International Strategic | Columbia Small vs. Columbia Select Large | Columbia Small vs. Brandes International Equity |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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