Correlation Between Ab Select and Columbia Mid
Can any of the company-specific risk be diversified away by investing in both Ab Select and Columbia Mid 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 Ab Select and Columbia Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Longshort and Columbia Mid Cap, you can compare the effects of market volatilities on Ab Select and Columbia Mid 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 Ab Select with a short position of Columbia Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Columbia Mid.
Diversification Opportunities for Ab Select and Columbia Mid
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ASCLX and Columbia is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Longshort and Columbia Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Mid Cap and Ab Select 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 Ab Select Longshort are associated (or correlated) with Columbia Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Mid Cap has no effect on the direction of Ab Select i.e., Ab Select and Columbia Mid go up and down completely randomly.
Pair Corralation between Ab Select and Columbia Mid
If you would invest 1,369 in Ab Select Longshort on August 29, 2024 and sell it today you would earn a total of 34.00 from holding Ab Select Longshort or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.35% |
| Values | Daily Returns |
Ab Select Longshort vs. Columbia Mid Cap
Performance |
| Timeline |
| Ab Select Longshort |
| Columbia Mid Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ab Select and Columbia Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Columbia Mid
The main advantage of trading using opposite Ab Select and Columbia Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select position performs unexpectedly, Columbia Mid 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 Mid will offset losses from the drop in Columbia Mid's long position.| Ab Select vs. Neuberger Berman Long | Ab Select vs. Neuberger Berman Long | Ab Select vs. Pimco Rae Worldwide |
| Columbia Mid vs. Barings Active Short | Columbia Mid vs. Kinetics Market Opportunities | Columbia Mid vs. Multisector Bond Sma | Columbia Mid vs. Ab Select Longshort |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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