Correlation Between Elcom International and Columbia Global
Can any of the company-specific risk be diversified away by investing in both Elcom International and Columbia Global 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 Elcom International and Columbia Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elcom International and Columbia Global Technology, you can compare the effects of market volatilities on Elcom International and Columbia Global 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 Elcom International with a short position of Columbia Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elcom International and Columbia Global.
Diversification Opportunities for Elcom International and Columbia Global
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elcom and Columbia is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Elcom International and Columbia Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Global Tech and Elcom International 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 Elcom International are associated (or correlated) with Columbia Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Global Tech has no effect on the direction of Elcom International i.e., Elcom International and Columbia Global go up and down completely randomly.
Pair Corralation between Elcom International and Columbia Global
If you would invest 8,927 in Columbia Global Technology on September 1, 2024 and sell it today you would earn a total of 447.00 from holding Columbia Global Technology or generate 5.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Elcom International vs. Columbia Global Technology
Performance |
| Timeline |
| Elcom International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Columbia Global Tech |
Elcom International and Columbia Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elcom International and Columbia Global
The main advantage of trading using opposite Elcom International and Columbia Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elcom International position performs unexpectedly, Columbia Global 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 Global will offset losses from the drop in Columbia Global's long position.| Elcom International vs. NuGene International | Elcom International vs. Zoom Video Communications | Elcom International vs. Bowmo Inc | Elcom International vs. Epazz Inc |
| Columbia Global vs. Columbia Small Cap | Columbia Global vs. Aquagold International | Columbia Global vs. Thrivent High Yield | Columbia Global vs. Morningstar Unconstrained Allocation |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |