Correlation Between Columbia Seligman and Glg Intl
Can any of the company-specific risk be diversified away by investing in both Columbia Seligman and Glg Intl 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 Glg Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Seligman Global and Glg Intl Small, you can compare the effects of market volatilities on Columbia Seligman and Glg Intl 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 Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Seligman and Glg Intl.
Diversification Opportunities for Columbia Seligman and Glg Intl
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Columbia and Glg is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Seligman Global and Glg Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glg Intl Small 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 Global are associated (or correlated) with Glg Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glg Intl Small has no effect on the direction of Columbia Seligman i.e., Columbia Seligman and Glg Intl go up and down completely randomly.
Pair Corralation between Columbia Seligman and Glg Intl
Assuming the 90 days horizon Columbia Seligman Global is expected to under-perform the Glg Intl. In addition to that, Columbia Seligman is 1.95 times more volatile than Glg Intl Small. It trades about -0.02 of its total potential returns per unit of risk. Glg Intl Small is currently generating about 0.26 per unit of volatility. If you would invest 8,535 in Glg Intl Small on November 6, 2024 and sell it today you would earn a total of 378.00 from holding Glg Intl Small or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Seligman Global vs. Glg Intl Small
Performance |
| Timeline |
| Columbia Seligman Global |
| Glg Intl Small |
Columbia Seligman and Glg Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Seligman and Glg Intl
The main advantage of trading using opposite Columbia Seligman and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Seligman position performs unexpectedly, Glg Intl 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 Glg Intl will offset losses from the drop in Glg Intl's long position.| Columbia Seligman vs. Deutsche Health And | Columbia Seligman vs. Lord Abbett Health | Columbia Seligman vs. Baron Health Care | Columbia Seligman vs. Alger Health Sciences |
| Glg Intl vs. Goldman Sachs Financial | Glg Intl vs. Financials Ultrasector Profund | Glg Intl vs. Davis Financial Fund | Glg Intl vs. Blackrock Financial Institutions |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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