Correlation Between Columbia Seligman and Investec Emerging
Can any of the company-specific risk be diversified away by investing in both Columbia Seligman and Investec Emerging 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 Investec Emerging 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 Investec Emerging Markets, you can compare the effects of market volatilities on Columbia Seligman and Investec Emerging 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 Investec Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Seligman and Investec Emerging.
Diversification Opportunities for Columbia Seligman and Investec Emerging
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Columbia and Investec is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Seligman Global and Investec Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investec Emerging Markets 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 Investec Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investec Emerging Markets has no effect on the direction of Columbia Seligman i.e., Columbia Seligman and Investec Emerging go up and down completely randomly.
Pair Corralation between Columbia Seligman and Investec Emerging
Assuming the 90 days horizon Columbia Seligman Global is expected to generate 1.33 times more return on investment than Investec Emerging. However, Columbia Seligman is 1.33 times more volatile than Investec Emerging Markets. It trades about 0.23 of its potential returns per unit of risk. Investec Emerging Markets is currently generating about -0.13 per unit of risk. If you would invest 7,276 in Columbia Seligman Global on August 31, 2024 and sell it today you would earn a total of 419.00 from holding Columbia Seligman Global or generate 5.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Seligman Global vs. Investec Emerging Markets
Performance |
| Timeline |
| Columbia Seligman Global |
| Investec Emerging Markets |
Columbia Seligman and Investec Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Seligman and Investec Emerging
The main advantage of trading using opposite Columbia Seligman and Investec Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Seligman position performs unexpectedly, Investec Emerging 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 Investec Emerging will offset losses from the drop in Investec Emerging's long position.| Columbia Seligman vs. Barings Emerging Markets | Columbia Seligman vs. Shelton Emerging Markets | Columbia Seligman vs. Investec Emerging Markets | Columbia Seligman vs. Growth Strategy Fund |
| Investec Emerging vs. Qs Large Cap | Investec Emerging vs. Americafirst Large Cap | Investec Emerging vs. T Rowe Price | Investec Emerging vs. Virtus Nfj Large Cap |
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 CEOs Directory module to screen CEOs from public companies around the world.
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