Correlation Between Firsthand Alternative and Columbia Small
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative 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 Firsthand Alternative and Columbia Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Columbia Small Cap, you can compare the effects of market volatilities on Firsthand Alternative 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 Firsthand Alternative with a short position of Columbia Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Columbia Small.
Diversification Opportunities for Firsthand Alternative and Columbia Small
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Firsthand and Columbia is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy 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 Firsthand Alternative 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 Firsthand Alternative Energy 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 Firsthand Alternative i.e., Firsthand Alternative and Columbia Small go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Columbia Small
Assuming the 90 days horizon Firsthand Alternative Energy is expected to under-perform the Columbia Small. In addition to that, Firsthand Alternative is 1.33 times more volatile than Columbia Small Cap. It trades about -0.01 of its total potential returns per unit of risk. Columbia Small Cap is currently generating about 0.03 per unit of volatility. If you would invest 4,555 in Columbia Small Cap on September 20, 2024 and sell it today you would earn a total of 742.00 from holding Columbia Small Cap or generate 16.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Columbia Small Cap
Performance |
| Timeline |
| Firsthand Alternative |
| Columbia Small Cap |
Firsthand Alternative and Columbia Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Columbia Small
The main advantage of trading using opposite Firsthand Alternative and Columbia Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative 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.| Firsthand Alternative vs. Berkshire Focus | Firsthand Alternative vs. Red Oak Technology | Firsthand Alternative vs. Jacob Internet Fund | Firsthand Alternative vs. Kinetics Internet Fund |
| Columbia Small vs. Barings Global Floating | Columbia Small vs. Franklin Mutual Global | Columbia Small vs. Ab Global Risk | Columbia Small vs. Mirova Global Green |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |