Correlation Between COLUMBIA and Valens
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By analyzing existing cross correlation between COLUMBIA PIPELINE GROUP and Valens, you can compare the effects of market volatilities on COLUMBIA and Valens 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 with a short position of Valens. Check out your portfolio center. Please also check ongoing floating volatility patterns of COLUMBIA and Valens.
Diversification Opportunities for COLUMBIA and Valens
Good diversification
The 3 months correlation between COLUMBIA and Valens is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding COLUMBIA PIPELINE GROUP and Valens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valens and COLUMBIA 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 PIPELINE GROUP are associated (or correlated) with Valens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valens has no effect on the direction of COLUMBIA i.e., COLUMBIA and Valens go up and down completely randomly.
Pair Corralation between COLUMBIA and Valens
Assuming the 90 days trading horizon COLUMBIA PIPELINE GROUP is expected to generate 12.68 times more return on investment than Valens. However, COLUMBIA is 12.68 times more volatile than Valens. It trades about 0.04 of its potential returns per unit of risk. Valens is currently generating about -0.03 per unit of risk. If you would invest 9,894 in COLUMBIA PIPELINE GROUP on September 12, 2024 and sell it today you would lose (33.00) from holding COLUMBIA PIPELINE GROUP or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.96% |
| Values | Daily Returns |
COLUMBIA PIPELINE GROUP vs. Valens
Performance |
| Timeline |
| COLUMBIA PIPELINE |
| Valens |
COLUMBIA and Valens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COLUMBIA and Valens
The main advantage of trading using opposite COLUMBIA and Valens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COLUMBIA position performs unexpectedly, Valens 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 Valens will offset losses from the drop in Valens' long position.| COLUMBIA vs. Valens | COLUMBIA vs. Texas Roadhouse | COLUMBIA vs. Rave Restaurant Group | COLUMBIA vs. ClearOne |
| Valens vs. NVIDIA | Valens vs. Taiwan Semiconductor Manufacturing | Valens vs. Micron Technology | Valens vs. Qualcomm Incorporated |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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