Correlation Between Columbia Greater and China Region
Can any of the company-specific risk be diversified away by investing in both Columbia Greater and China Region 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 Columbia Greater and China Region into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Greater China and China Region Fund, you can compare the effects of market volatilities on Columbia Greater and China Region 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 Columbia Greater with a short position of China Region. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Greater and China Region.
Diversification Opportunities for Columbia Greater and China Region
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Columbia and China is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Greater China and China Region Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Region and Columbia Greater 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 Columbia Greater China are associated (or correlated) with China Region. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Region has no effect on the direction of Columbia Greater i.e., Columbia Greater and China Region go up and down completely randomly.
Pair Corralation between Columbia Greater and China Region
If you would invest 527.00 in China Region Fund on October 24, 2024 and sell it today you would earn a total of 0.00 from holding China Region Fund or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Columbia Greater China vs. China Region Fund
Performance |
| Timeline |
| Columbia Greater China |
| China Region |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Columbia Greater and China Region Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Greater and China Region
The main advantage of trading using opposite Columbia Greater and China Region positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Greater position performs unexpectedly, China Region 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 China Region will offset losses from the drop in China Region's long position.| Columbia Greater vs. Vy Clarion Real | Columbia Greater vs. Short Real Estate | Columbia Greater vs. Rems Real Estate | Columbia Greater vs. Dunham Real Estate |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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