Correlation Between Valens and COLUMBIA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Valens and COLUMBIA PIPELINE GROUP, you can compare the effects of market volatilities on Valens and COLUMBIA 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 Valens with a short position of COLUMBIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valens and COLUMBIA.
Diversification Opportunities for Valens and COLUMBIA
Excellent diversification
The 3 months correlation between Valens and COLUMBIA is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Valens and COLUMBIA PIPELINE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA PIPELINE and Valens 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 Valens are associated (or correlated) with COLUMBIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COLUMBIA PIPELINE has no effect on the direction of Valens i.e., Valens and COLUMBIA go up and down completely randomly.
Pair Corralation between Valens and COLUMBIA
Considering the 90-day investment horizon Valens is expected to generate 29.2 times more return on investment than COLUMBIA. However, Valens is 29.2 times more volatile than COLUMBIA PIPELINE GROUP. It trades about 0.03 of its potential returns per unit of risk. COLUMBIA PIPELINE GROUP is currently generating about -0.03 per unit of risk. If you would invest 231.00 in Valens on November 3, 2024 and sell it today you would earn a total of 5.00 from holding Valens or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.0% |
| Values | Daily Returns |
Valens vs. COLUMBIA PIPELINE GROUP
Performance |
| Timeline |
| Valens |
| COLUMBIA PIPELINE |
Valens and COLUMBIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valens and COLUMBIA
The main advantage of trading using opposite Valens and COLUMBIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valens position performs unexpectedly, COLUMBIA 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 will offset losses from the drop in COLUMBIA's long position.| Valens vs. Wolfspeed | Valens vs. GSI Technology | Valens vs. Lattice Semiconductor | Valens vs. ON Semiconductor |
| COLUMBIA vs. Black Spade Acquisition | COLUMBIA vs. United Airlines Holdings | COLUMBIA vs. Skillful Craftsman Education | COLUMBIA vs. TFI 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |