Correlation Between Emerging Europe and Columbia Emerging
Can any of the company-specific risk be diversified away by investing in both Emerging Europe and Columbia Emerging 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 Emerging Europe and Columbia Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerging Europe Fund and Columbia Emerging Markets, you can compare the effects of market volatilities on Emerging Europe and Columbia Emerging 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 Emerging Europe with a short position of Columbia Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Europe and Columbia Emerging.
Diversification Opportunities for Emerging Europe and Columbia Emerging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Emerging and Columbia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Europe Fund and Columbia Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Emerging Markets and Emerging Europe 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 Emerging Europe Fund are associated (or correlated) with Columbia Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Emerging Markets has no effect on the direction of Emerging Europe i.e., Emerging Europe and Columbia Emerging go up and down completely randomly.
Pair Corralation between Emerging Europe and Columbia Emerging
Assuming the 90 days horizon Emerging Europe Fund is expected to generate 1.23 times more return on investment than Columbia Emerging. However, Emerging Europe is 1.23 times more volatile than Columbia Emerging Markets. It trades about 0.07 of its potential returns per unit of risk. Columbia Emerging Markets is currently generating about 0.03 per unit of risk. If you would invest 374.00 in Emerging Europe Fund on November 2, 2024 and sell it today you would earn a total of 31.00 from holding Emerging Europe Fund or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.67% |
| Values | Daily Returns |
Emerging Europe Fund vs. Columbia Emerging Markets
Performance |
| Timeline |
| Emerging Europe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Columbia Emerging Markets |
Emerging Europe and Columbia Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Europe and Columbia Emerging
The main advantage of trading using opposite Emerging Europe and Columbia Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Europe position performs unexpectedly, Columbia Emerging 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 Emerging will offset losses from the drop in Columbia Emerging's long position.| Emerging Europe vs. Ab Bond Inflation | Emerging Europe vs. Intermediate Bond Fund | Emerging Europe vs. Franklin Adjustable Government | Emerging Europe vs. Versatile Bond Portfolio |
| Columbia Emerging vs. Fidelity Advisor Financial | Columbia Emerging vs. Rmb Mendon Financial | Columbia Emerging vs. Transamerica Financial Life | Columbia Emerging vs. Prudential Financial Services |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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