Correlation Between Exela Technologies and Columbia Global
Can any of the company-specific risk be diversified away by investing in both Exela Technologies and Columbia Global 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 Exela Technologies and Columbia Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exela Technologies and Columbia Global Technology, you can compare the effects of market volatilities on Exela Technologies and Columbia Global 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 Exela Technologies with a short position of Columbia Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and Columbia Global.
Diversification Opportunities for Exela Technologies and Columbia Global
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exela and Columbia is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies and Columbia Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Global Tech and Exela Technologies 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 Exela Technologies are associated (or correlated) with Columbia Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Global Tech has no effect on the direction of Exela Technologies i.e., Exela Technologies and Columbia Global go up and down completely randomly.
Pair Corralation between Exela Technologies and Columbia Global
Given the investment horizon of 90 days Exela Technologies is expected to under-perform the Columbia Global. In addition to that, Exela Technologies is 4.03 times more volatile than Columbia Global Technology. It trades about -0.05 of its total potential returns per unit of risk. Columbia Global Technology is currently generating about 0.09 per unit of volatility. If you would invest 6,933 in Columbia Global Technology on August 26, 2024 and sell it today you would earn a total of 2,340 from holding Columbia Global Technology or generate 33.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.79% |
| Values | Daily Returns |
Exela Technologies vs. Columbia Global Technology
Performance |
| Timeline |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Columbia Global Tech |
Exela Technologies and Columbia Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exela Technologies and Columbia Global
The main advantage of trading using opposite Exela Technologies and Columbia Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies position performs unexpectedly, Columbia Global 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 Global will offset losses from the drop in Columbia Global's long position.| Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Infobird Co | Exela Technologies vs. Quhuo | Exela Technologies vs. CXApp Inc |
| Columbia Global vs. Columbia Global Technology | Columbia Global vs. Columbia Global Technology | Columbia Global vs. Columbia Global Technology | Columbia Global vs. Columbia Global Technology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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