Correlation Between Firsthand Alternative and Columbia Integrated
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Columbia Integrated 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 Integrated 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 Integrated Large, you can compare the effects of market volatilities on Firsthand Alternative and Columbia Integrated 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 Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Columbia Integrated.
Diversification Opportunities for Firsthand Alternative and Columbia Integrated
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Firsthand and Columbia is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Columbia Integrated Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Integrated Large 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 Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Integrated Large has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Columbia Integrated go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Columbia Integrated
Assuming the 90 days horizon Firsthand Alternative is expected to generate 4.62 times less return on investment than Columbia Integrated. In addition to that, Firsthand Alternative is 1.6 times more volatile than Columbia Integrated Large. It trades about 0.03 of its total potential returns per unit of risk. Columbia Integrated Large is currently generating about 0.2 per unit of volatility. If you would invest 2,104 in Columbia Integrated Large on September 3, 2024 and sell it today you would earn a total of 277.00 from holding Columbia Integrated Large or generate 13.17% 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 Integrated Large
Performance |
| Timeline |
| Firsthand Alternative |
| Columbia Integrated Large |
Firsthand Alternative and Columbia Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Columbia Integrated
The main advantage of trading using opposite Firsthand Alternative and Columbia Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Columbia Integrated 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 Integrated will offset losses from the drop in Columbia Integrated's long position.| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
| Columbia Integrated vs. Small Midcap Dividend Income | Columbia Integrated vs. Fisher Small Cap | Columbia Integrated vs. The Hartford Small | Columbia Integrated vs. Kinetics Small Cap |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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