Correlation Between Ssga International and Columbia Emerging
Can any of the company-specific risk be diversified away by investing in both Ssga International and Columbia 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 Ssga International and Columbia Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssga International Stock and Columbia Emerging Markets, you can compare the effects of market volatilities on Ssga International and Columbia 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 Ssga International with a short position of Columbia Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssga International and Columbia Emerging.
Diversification Opportunities for Ssga International and Columbia Emerging
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ssga and Columbia is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ssga International Stock and Columbia Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Emerging Markets and Ssga International 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 Ssga International Stock are associated (or correlated) with Columbia Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Emerging Markets has no effect on the direction of Ssga International i.e., Ssga International and Columbia Emerging go up and down completely randomly.
Pair Corralation between Ssga International and Columbia Emerging
Assuming the 90 days horizon Ssga International Stock is expected to generate 0.81 times more return on investment than Columbia Emerging. However, Ssga International Stock is 1.24 times less risky than Columbia Emerging. It trades about -0.1 of its potential returns per unit of risk. Columbia Emerging Markets is currently generating about -0.2 per unit of risk. If you would invest 1,150 in Ssga International Stock on August 30, 2024 and sell it today you would lose (18.00) from holding Ssga International Stock or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssga International Stock vs. Columbia Emerging Markets
Performance |
| Timeline |
| Ssga International Stock |
| Columbia Emerging Markets |
Ssga International and Columbia Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssga International and Columbia Emerging
The main advantage of trading using opposite Ssga International and Columbia Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssga International position performs unexpectedly, Columbia 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 Columbia Emerging will offset losses from the drop in Columbia Emerging's long position.| Ssga International vs. HUMANA INC | Ssga International vs. Aquagold International | Ssga International vs. Barloworld Ltd ADR | Ssga International vs. Morningstar Unconstrained Allocation |
| Columbia Emerging vs. Vanguard Emerging Markets | Columbia Emerging vs. Vanguard Emerging Markets | Columbia Emerging vs. HUMANA INC | Columbia Emerging vs. Aquagold International |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets |