Correlation Between Elcom International and Columbia Seligman
Can any of the company-specific risk be diversified away by investing in both Elcom International and Columbia Seligman 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 Seligman 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 Seligman Global, you can compare the effects of market volatilities on Elcom International and Columbia Seligman 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 Seligman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elcom International and Columbia Seligman.
Diversification Opportunities for Elcom International and Columbia Seligman
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elcom and Columbia is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Elcom International and Columbia Seligman Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Seligman Global 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 Seligman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Seligman Global has no effect on the direction of Elcom International i.e., Elcom International and Columbia Seligman go up and down completely randomly.
Pair Corralation between Elcom International and Columbia Seligman
If you would invest 7,276 in Columbia Seligman Global on August 31, 2024 and sell it today you would earn a total of 356.00 from holding Columbia Seligman Global or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Elcom International vs. Columbia Seligman Global
Performance |
| Timeline |
| Elcom International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Columbia Seligman Global |
Elcom International and Columbia Seligman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elcom International and Columbia Seligman
The main advantage of trading using opposite Elcom International and Columbia Seligman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elcom International position performs unexpectedly, Columbia Seligman 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 Seligman will offset losses from the drop in Columbia Seligman'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 Seligman vs. Barings Emerging Markets | Columbia Seligman vs. Shelton Emerging Markets | Columbia Seligman vs. Investec Emerging Markets | Columbia Seligman vs. Growth Strategy Fund |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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