Correlation Between Voya High and Columbia Global
Can any of the company-specific risk be diversified away by investing in both Voya High 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 Voya High and Columbia Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya High Yield and Columbia Global Technology, you can compare the effects of market volatilities on Voya High 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 Voya High with a short position of Columbia Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Columbia Global.
Diversification Opportunities for Voya High and Columbia Global
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Voya and Columbia is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield 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 Voya High 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 Voya High Yield 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 Voya High i.e., Voya High and Columbia Global go up and down completely randomly.
Pair Corralation between Voya High and Columbia Global
Assuming the 90 days horizon Voya High is expected to generate 4.21 times less return on investment than Columbia Global. But when comparing it to its historical volatility, Voya High Yield is 7.33 times less risky than Columbia Global. It trades about 0.14 of its potential returns per unit of risk. Columbia Global Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,315 in Columbia Global Technology on August 28, 2024 and sell it today you would earn a total of 1,817 from holding Columbia Global Technology or generate 24.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya High Yield vs. Columbia Global Technology
Performance |
| Timeline |
| Voya High Yield |
| Columbia Global Tech |
Voya High and Columbia Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Columbia Global
The main advantage of trading using opposite Voya High and Columbia Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High 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.| Voya High vs. Investec Emerging Markets | Voya High vs. Franklin Emerging Market | Voya High vs. Dws Emerging Markets | Voya High vs. Angel Oak Multi Strategy |
| Columbia Global vs. Columbia Global Technology | Columbia Global vs. Columbia Small Cap | Columbia Global vs. William Blair International | Columbia Global vs. Columbia Global Dividend |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |