Correlation Between Siit Emerging and Columbia Flexible
Can any of the company-specific risk be diversified away by investing in both Siit Emerging and Columbia Flexible 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 Siit Emerging and Columbia Flexible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Emerging Markets and Columbia Flexible Capital, you can compare the effects of market volatilities on Siit Emerging and Columbia Flexible 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 Siit Emerging with a short position of Columbia Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Columbia Flexible.
Diversification Opportunities for Siit Emerging and Columbia Flexible
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Siit and Columbia is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Columbia Flexible Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Flexible Capital and Siit Emerging 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 Siit Emerging Markets are associated (or correlated) with Columbia Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Flexible Capital has no effect on the direction of Siit Emerging i.e., Siit Emerging and Columbia Flexible go up and down completely randomly.
Pair Corralation between Siit Emerging and Columbia Flexible
Assuming the 90 days horizon Siit Emerging is expected to generate 2.25 times less return on investment than Columbia Flexible. In addition to that, Siit Emerging is 2.08 times more volatile than Columbia Flexible Capital. It trades about 0.04 of its total potential returns per unit of risk. Columbia Flexible Capital is currently generating about 0.2 per unit of volatility. If you would invest 1,300 in Columbia Flexible Capital on September 13, 2024 and sell it today you would earn a total of 138.00 from holding Columbia Flexible Capital or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Emerging Markets vs. Columbia Flexible Capital
Performance |
| Timeline |
| Siit Emerging Markets |
| Columbia Flexible Capital |
Siit Emerging and Columbia Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Columbia Flexible
The main advantage of trading using opposite Siit Emerging and Columbia Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging position performs unexpectedly, Columbia Flexible 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 Flexible will offset losses from the drop in Columbia Flexible's long position.| Siit Emerging vs. Simt Multi Asset Accumulation | Siit Emerging vs. Saat Market Growth | Siit Emerging vs. Simt Real Return | Siit Emerging vs. Simt Small Cap |
| Columbia Flexible vs. Franklin High Yield | Columbia Flexible vs. Gamco Global Telecommunications | Columbia Flexible vs. Oklahoma Municipal Fund | Columbia Flexible vs. Old Westbury Municipal |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |