Correlation Between Columbia Seligman and KraneShares
Can any of the company-specific risk be diversified away by investing in both Columbia Seligman and KraneShares 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 KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Seligman Premium and KraneShares, you can compare the effects of market volatilities on Columbia Seligman and KraneShares 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 KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Seligman and KraneShares.
Diversification Opportunities for Columbia Seligman and KraneShares
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Columbia and KraneShares is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Seligman Premium and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares 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 Premium are associated (or correlated) with KraneShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares has no effect on the direction of Columbia Seligman i.e., Columbia Seligman and KraneShares go up and down completely randomly.
Pair Corralation between Columbia Seligman and KraneShares
If you would invest 3,136 in Columbia Seligman Premium on October 20, 2024 and sell it today you would earn a total of 186.00 from holding Columbia Seligman Premium or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Columbia Seligman Premium vs. KraneShares
Performance |
| Timeline |
| Columbia Seligman Premium |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Columbia Seligman and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Seligman and KraneShares
The main advantage of trading using opposite Columbia Seligman and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Seligman position performs unexpectedly, KraneShares 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 KraneShares will offset losses from the drop in KraneShares' long position.| Columbia Seligman vs. Eaton Vance Enhanced | Columbia Seligman vs. BlackRock Utility Infrastructure | Columbia Seligman vs. BlackRock Health Sciences | Columbia Seligman vs. BlackRock Science Tech |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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