Correlation Between Nasdaq and Columbia Integrated
Can any of the company-specific risk be diversified away by investing in both Nasdaq and Columbia Integrated 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 Nasdaq and Columbia Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and Columbia Integrated Large, you can compare the effects of market volatilities on Nasdaq and Columbia Integrated 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 Nasdaq with a short position of Columbia Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Columbia Integrated.
Diversification Opportunities for Nasdaq and Columbia Integrated
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nasdaq and Columbia is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Columbia Integrated Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Integrated Large and Nasdaq 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 Nasdaq Inc are associated (or correlated) with Columbia Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Integrated Large has no effect on the direction of Nasdaq i.e., Nasdaq and Columbia Integrated go up and down completely randomly.
Pair Corralation between Nasdaq and Columbia Integrated
Given the investment horizon of 90 days Nasdaq Inc is expected to generate 1.48 times more return on investment than Columbia Integrated. However, Nasdaq is 1.48 times more volatile than Columbia Integrated Large. It trades about 0.05 of its potential returns per unit of risk. Columbia Integrated Large is currently generating about 0.04 per unit of risk. If you would invest 6,001 in Nasdaq Inc on September 19, 2024 and sell it today you would earn a total of 1,960 from holding Nasdaq Inc or generate 32.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 24.65% |
| Values | Daily Returns |
Nasdaq Inc vs. Columbia Integrated Large
Performance |
| Timeline |
| Nasdaq Inc |
| Columbia Integrated Large |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nasdaq and Columbia Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Columbia Integrated
The main advantage of trading using opposite Nasdaq and Columbia Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, Columbia Integrated 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 Integrated will offset losses from the drop in Columbia Integrated's long position.The idea behind Nasdaq Inc and Columbia Integrated Large 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 Integrated vs. Qs Global Equity | Columbia Integrated vs. Calamos Global Equity | Columbia Integrated vs. Dodge International Stock | Columbia Integrated vs. Cutler Equity |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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