Correlation Between Columbia Seligman and Jacob Funds
Can any of the company-specific risk be diversified away by investing in both Columbia Seligman and Jacob Funds 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 Seligman and Jacob Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Seligman Munications and Jacob Funds , you can compare the effects of market volatilities on Columbia Seligman and Jacob Funds 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 Seligman with a short position of Jacob Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Seligman and Jacob Funds.
Diversification Opportunities for Columbia Seligman and Jacob Funds
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Columbia and Jacob is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Seligman Munications and Jacob Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Funds and Columbia Seligman 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 Seligman Munications are associated (or correlated) with Jacob Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Funds has no effect on the direction of Columbia Seligman i.e., Columbia Seligman and Jacob Funds go up and down completely randomly.
Pair Corralation between Columbia Seligman and Jacob Funds
Assuming the 90 days horizon Columbia Seligman Munications is expected to generate 0.74 times more return on investment than Jacob Funds. However, Columbia Seligman Munications is 1.35 times less risky than Jacob Funds. It trades about 0.07 of its potential returns per unit of risk. Jacob Funds is currently generating about 0.01 per unit of risk. If you would invest 4,204 in Columbia Seligman Munications on September 3, 2024 and sell it today you would earn a total of 2,104 from holding Columbia Seligman Munications or generate 50.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 56.97% |
| Values | Daily Returns |
Columbia Seligman Munications vs. Jacob Funds
Performance |
| Timeline |
| Columbia Seligman |
| Jacob Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Columbia Seligman and Jacob Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Seligman and Jacob Funds
The main advantage of trading using opposite Columbia Seligman and Jacob Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Seligman position performs unexpectedly, Jacob Funds 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 Jacob Funds will offset losses from the drop in Jacob Funds' long position.| Columbia Seligman vs. Boston Partners Small | Columbia Seligman vs. Ab Discovery Value | Columbia Seligman vs. American Century Etf | Columbia Seligman vs. Lord Abbett Small |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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