Correlation Between Columbia Emerging and Emerging Europe
Can any of the company-specific risk be diversified away by investing in both Columbia Emerging and Emerging Europe 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 Emerging and Emerging Europe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Emerging Markets and Emerging Europe Fund, you can compare the effects of market volatilities on Columbia Emerging and Emerging Europe 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 Emerging with a short position of Emerging Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Emerging and Emerging Europe.
Diversification Opportunities for Columbia Emerging and Emerging Europe
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Columbia and Emerging is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Emerging Markets and Emerging Europe Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Europe and Columbia 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 Columbia Emerging Markets are associated (or correlated) with Emerging Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Europe has no effect on the direction of Columbia Emerging i.e., Columbia Emerging and Emerging Europe go up and down completely randomly.
Pair Corralation between Columbia Emerging and Emerging Europe
Assuming the 90 days horizon Columbia Emerging is expected to generate 2.94 times less return on investment than Emerging Europe. But when comparing it to its historical volatility, Columbia Emerging Markets is 1.23 times less risky than Emerging Europe. It trades about 0.03 of its potential returns per unit of risk. Emerging Europe Fund is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 374.00 in Emerging Europe Fund on November 2, 2024 and sell it today you would earn a total of 31.00 from holding Emerging Europe Fund or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.67% |
| Values | Daily Returns |
Columbia Emerging Markets vs. Emerging Europe Fund
Performance |
| Timeline |
| Columbia Emerging Markets |
| Emerging Europe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Columbia Emerging and Emerging Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Emerging and Emerging Europe
The main advantage of trading using opposite Columbia Emerging and Emerging Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Emerging position performs unexpectedly, Emerging Europe 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 Emerging Europe will offset losses from the drop in Emerging Europe's long position.| Columbia Emerging vs. Fidelity Advisor Financial | Columbia Emerging vs. Rmb Mendon Financial | Columbia Emerging vs. Transamerica Financial Life | Columbia Emerging vs. Prudential Financial Services |
| Emerging Europe vs. Ab Bond Inflation | Emerging Europe vs. Intermediate Bond Fund | Emerging Europe vs. Franklin Adjustable Government | Emerging Europe vs. Versatile Bond Portfolio |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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