Correlation Between Bancolombia and Qinetiq Group
Can any of the company-specific risk be diversified away by investing in both Bancolombia and Qinetiq Group 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 Bancolombia and Qinetiq Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bancolombia SA ADR and Qinetiq Group PLC, you can compare the effects of market volatilities on Bancolombia and Qinetiq Group 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 Bancolombia with a short position of Qinetiq Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bancolombia and Qinetiq Group.
Diversification Opportunities for Bancolombia and Qinetiq Group
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bancolombia and Qinetiq is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bancolombia SA ADR and Qinetiq Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinetiq Group PLC and Bancolombia 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 Bancolombia SA ADR are associated (or correlated) with Qinetiq Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinetiq Group PLC has no effect on the direction of Bancolombia i.e., Bancolombia and Qinetiq Group go up and down completely randomly.
Pair Corralation between Bancolombia and Qinetiq Group
Considering the 90-day investment horizon Bancolombia SA ADR is expected to generate 0.48 times more return on investment than Qinetiq Group. However, Bancolombia SA ADR is 2.09 times less risky than Qinetiq Group. It trades about 0.09 of its potential returns per unit of risk. Qinetiq Group PLC is currently generating about -0.11 per unit of risk. If you would invest 3,176 in Bancolombia SA ADR on September 5, 2024 and sell it today you would earn a total of 87.00 from holding Bancolombia SA ADR or generate 2.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bancolombia SA ADR vs. Qinetiq Group PLC
Performance |
Timeline |
Bancolombia SA ADR |
Qinetiq Group PLC |
Bancolombia and Qinetiq Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bancolombia and Qinetiq Group
The main advantage of trading using opposite Bancolombia and Qinetiq Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bancolombia position performs unexpectedly, Qinetiq Group 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 Qinetiq Group will offset losses from the drop in Qinetiq Group's long position.Bancolombia vs. Banco De Chile | Bancolombia vs. Banco Bradesco SA | Bancolombia vs. Banco Santander Chile | Bancolombia vs. Intercorp Financial Services |
Qinetiq Group vs. Rolls Royce Holdings PLC | Qinetiq Group vs. VirTra Inc | Qinetiq Group vs. BWX Technologies | Qinetiq Group vs. Embraer SA ADR |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |