Correlation Between Columbia Seligman and Voya Target
Can any of the company-specific risk be diversified away by investing in both Columbia Seligman and Voya Target 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 Voya Target 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 Voya Target Retirement, you can compare the effects of market volatilities on Columbia Seligman and Voya Target 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 Voya Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Seligman and Voya Target.
Diversification Opportunities for Columbia Seligman and Voya Target
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Columbia and Voya is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Seligman Global and Voya Target Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Target Retirement 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 Voya Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Target Retirement has no effect on the direction of Columbia Seligman i.e., Columbia Seligman and Voya Target go up and down completely randomly.
Pair Corralation between Columbia Seligman and Voya Target
Assuming the 90 days horizon Columbia Seligman is expected to generate 1.11 times less return on investment than Voya Target. In addition to that, Columbia Seligman is 2.99 times more volatile than Voya Target Retirement. It trades about 0.07 of its total potential returns per unit of risk. Voya Target Retirement is currently generating about 0.23 per unit of volatility. If you would invest 1,335 in Voya Target Retirement on November 1, 2024 and sell it today you would earn a total of 35.00 from holding Voya Target Retirement or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Seligman Global vs. Voya Target Retirement
Performance |
| Timeline |
| Columbia Seligman Global |
| Voya Target Retirement |
Columbia Seligman and Voya Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Seligman and Voya Target
The main advantage of trading using opposite Columbia Seligman and Voya Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Seligman position performs unexpectedly, Voya Target 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 Voya Target will offset losses from the drop in Voya Target's long position.| Columbia Seligman vs. Voya Target Retirement | Columbia Seligman vs. Columbia Moderate Growth | Columbia Seligman vs. Voya Retirement Moderate | Columbia Seligman vs. Franklin Lifesmart Retirement |
| Voya Target vs. William Blair Emerging | Voya Target vs. Balanced Strategy Fund | Voya Target vs. Investec Emerging Markets | Voya Target vs. Siit Emerging Markets |
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
| Transaction History View history of all your transactions and understand their impact on performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |