Correlation Between GM and Columbia Flexible
Can any of the company-specific risk be diversified away by investing in both GM and Columbia Flexible 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 GM and Columbia Flexible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Columbia Flexible Capital, you can compare the effects of market volatilities on GM and Columbia Flexible 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 GM with a short position of Columbia Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Columbia Flexible.
Diversification Opportunities for GM and Columbia Flexible
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GM and Columbia is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Columbia Flexible Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Flexible Capital and GM 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 General Motors are associated (or correlated) with Columbia Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Flexible Capital has no effect on the direction of GM i.e., GM and Columbia Flexible go up and down completely randomly.
Pair Corralation between GM and Columbia Flexible
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Columbia Flexible. In addition to that, GM is 6.26 times more volatile than Columbia Flexible Capital. It trades about -0.14 of its total potential returns per unit of risk. Columbia Flexible Capital is currently generating about 0.27 per unit of volatility. If you would invest 1,384 in Columbia Flexible Capital on November 28, 2024 and sell it today you would earn a total of 54.00 from holding Columbia Flexible Capital or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Columbia Flexible Capital
Performance |
| Timeline |
| General Motors |
| Columbia Flexible Capital |
GM and Columbia Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Columbia Flexible
The main advantage of trading using opposite GM and Columbia Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Columbia Flexible 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 Flexible will offset losses from the drop in Columbia Flexible's long position.The idea behind General Motors and Columbia Flexible Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Columbia Flexible vs. Small Pany Growth | Columbia Flexible vs. Ab Centrated International | Columbia Flexible vs. Growth Fund Of | Columbia Flexible vs. Multimanager Lifestyle Growth |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |