Correlation Between Ibotta, and Columbia Large | IBTA vs. NINDX

Correlation Between Ibotta, and Columbia Large

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

Diversification Opportunities for Ibotta, and Columbia Large

Ibotta,ColumbiaDiversified AwayIbotta,ColumbiaDiversified Away100%
0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between Ibotta, and Columbia is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ibotta, and Columbia Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Large Cap and Ibotta, 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 Ibotta, are associated (or correlated) with Columbia Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Large Cap has no effect on the direction of Ibotta, i.e., Ibotta, and Columbia Large go up and down completely randomly.

Pair Corralation between Ibotta, and Columbia Large

Given the investment horizon of 90 days Ibotta, is expected to generate 2.83 times more return on investment than Columbia Large. However, Ibotta, is 2.83 times more volatile than Columbia Large Cap. It trades about 0.01 of its potential returns per unit of risk. Columbia Large Cap is currently generating about -0.18 per unit of risk. If you would invest  7,493  in Ibotta, on September 14, 2024 and sell it today you would lose (69.00) from holding Ibotta, or give up 0.92% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy95.45%
ValuesDaily Returns

Ibotta,  vs.  Columbia Large Cap

 Performance 
JavaScript chart by amCharts 3.21.15OctNov 01020304050
JavaScript chart by amCharts 3.21.15IBTA NINDX
       Timeline  
Ibotta, 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Ibotta, are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Ibotta, sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec6065707580
Columbia Large Cap 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Weak
Over the last 90 days Columbia Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Columbia Large 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 3.21.15OctNovDecNovDec6162636465

Ibotta, and Columbia Large Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.52-7.88-5.24-2.60.032.855.748.6311.53 0.10.20.30.4
JavaScript chart by amCharts 3.21.15IBTA NINDX
       Returns  

Pair Trading with Ibotta, and Columbia Large

The main advantage of trading using opposite Ibotta, and Columbia Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ibotta, position performs unexpectedly, Columbia Large 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 Large will offset losses from the drop in Columbia Large's long position.
The idea behind Ibotta, and Columbia Large Cap 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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