Correlation Between Columbia Moderate and Fidelity Convertible

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Columbia Moderate and Fidelity Convertible 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 Moderate and Fidelity Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Moderate Growth and Fidelity Vertible Securities, you can compare the effects of market volatilities on Columbia Moderate and Fidelity Convertible 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 Moderate with a short position of Fidelity Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Moderate and Fidelity Convertible.

Diversification Opportunities for Columbia Moderate and Fidelity Convertible

ColumbiaFidelityDiversified AwayColumbiaFidelityDiversified Away100%
0.83
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Columbia and Fidelity is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Moderate Growth and Fidelity Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Convertible and Columbia Moderate 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 Moderate Growth are associated (or correlated) with Fidelity Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Convertible has no effect on the direction of Columbia Moderate i.e., Columbia Moderate and Fidelity Convertible go up and down completely randomly.

Pair Corralation between Columbia Moderate and Fidelity Convertible

Assuming the 90 days horizon Columbia Moderate Growth is expected to generate 0.62 times more return on investment than Fidelity Convertible. However, Columbia Moderate Growth is 1.61 times less risky than Fidelity Convertible. It trades about 0.07 of its potential returns per unit of risk. Fidelity Vertible Securities is currently generating about 0.04 per unit of risk. If you would invest  4,010  in Columbia Moderate Growth on October 26, 2024 and sell it today you would earn a total of  91.00  from holding Columbia Moderate Growth or generate 2.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy98.33%
ValuesDaily Returns

Columbia Moderate Growth  vs.  Fidelity Vertible Securities

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -20246
JavaScript chart by amCharts 3.21.15CMATX FACVX
       Timeline  
Columbia Moderate Growth 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Columbia Moderate Growth are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Columbia Moderate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan4040.54141.5
Fidelity Convertible 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Vertible Securities are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Fidelity Convertible is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan34.53535.53636.53737.5

Columbia Moderate and Fidelity Convertible Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.8-1.34-0.88-0.420.0076960.420.881.341.82.26 0.20.40.60.81.01.2
JavaScript chart by amCharts 3.21.15CMATX FACVX
       Returns  

Pair Trading with Columbia Moderate and Fidelity Convertible

The main advantage of trading using opposite Columbia Moderate and Fidelity Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Moderate position performs unexpectedly, Fidelity Convertible 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 Fidelity Convertible will offset losses from the drop in Fidelity Convertible's long position.
The idea behind Columbia Moderate Growth and Fidelity Vertible Securities 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.
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Bonds Directory
Find actively traded corporate debentures issued by US companies