Correlation Between Columbia Seligman and Veea
Can any of the company-specific risk be diversified away by investing in both Columbia Seligman and Veea 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 Seligman and Veea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Seligman Global and Veea Inc, you can compare the effects of market volatilities on Columbia Seligman and Veea 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 Seligman with a short position of Veea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Seligman and Veea.
Diversification Opportunities for Columbia Seligman and Veea
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Columbia and Veea is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Seligman Global and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc and Columbia Seligman 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 Seligman Global are associated (or correlated) with Veea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veea Inc has no effect on the direction of Columbia Seligman i.e., Columbia Seligman and Veea go up and down completely randomly.
Pair Corralation between Columbia Seligman and Veea
Assuming the 90 days horizon Columbia Seligman Global is expected to generate 0.15 times more return on investment than Veea. However, Columbia Seligman Global is 6.47 times less risky than Veea. It trades about 0.4 of its potential returns per unit of risk. Veea Inc is currently generating about -0.04 per unit of risk. If you would invest 8,121 in Columbia Seligman Global on September 1, 2024 and sell it today you would earn a total of 585.00 from holding Columbia Seligman Global or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Columbia Seligman Global vs. Veea Inc
Performance |
| Timeline |
| Columbia Seligman Global |
| Veea Inc |
Columbia Seligman and Veea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Seligman and Veea
The main advantage of trading using opposite Columbia Seligman and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Seligman position performs unexpectedly, Veea 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 Veea will offset losses from the drop in Veea's long position.| Columbia Seligman vs. Columbia Seligman Munications | Columbia Seligman vs. Columbia Seligman Global | Columbia Seligman vs. Columbia Seligman Global | Columbia Seligman vs. Columbia Seligman Global |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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