Correlation Between Columbia Seligman and UBS
Can any of the company-specific risk be diversified away by investing in both Columbia Seligman and UBS 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 UBS 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 UBS, you can compare the effects of market volatilities on Columbia Seligman and UBS 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 UBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Seligman and UBS.
Diversification Opportunities for Columbia Seligman and UBS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Columbia and UBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Seligman Premium and UBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS 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 UBS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS has no effect on the direction of Columbia Seligman i.e., Columbia Seligman and UBS go up and down completely randomly.
Pair Corralation between Columbia Seligman and UBS
If you would invest 3,335 in Columbia Seligman Premium on September 12, 2024 and sell it today you would earn a total of 240.00 from holding Columbia Seligman Premium or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Columbia Seligman Premium vs. UBS
Performance |
| Timeline |
| Columbia Seligman Premium |
| UBS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Columbia Seligman and UBS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Seligman and UBS
The main advantage of trading using opposite Columbia Seligman and UBS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Seligman position performs unexpectedly, UBS 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 UBS will offset losses from the drop in UBS's long position.| Columbia Seligman vs. Brookfield Real Assets | Columbia Seligman vs. Guggenheim Strategic Opportunities | Columbia Seligman vs. Cornerstone Strategic Return | Columbia Seligman vs. Cornerstone Strategic Value |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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