Correlation Between Exela Technologies and Columbia Seligman
Can any of the company-specific risk be diversified away by investing in both Exela Technologies and Columbia Seligman 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 Seligman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exela Technologies Preferred and Columbia Seligman Global, you can compare the effects of market volatilities on Exela Technologies and Columbia Seligman 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 Seligman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and Columbia Seligman.
Diversification Opportunities for Exela Technologies and Columbia Seligman
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exela and Columbia is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies Preferred and Columbia Seligman Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Seligman Global 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 Preferred are associated (or correlated) with Columbia Seligman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Seligman Global has no effect on the direction of Exela Technologies i.e., Exela Technologies and Columbia Seligman go up and down completely randomly.
Pair Corralation between Exela Technologies and Columbia Seligman
Assuming the 90 days horizon Exela Technologies Preferred is expected to under-perform the Columbia Seligman. In addition to that, Exela Technologies is 6.82 times more volatile than Columbia Seligman Global. It trades about -0.03 of its total potential returns per unit of risk. Columbia Seligman Global is currently generating about 0.09 per unit of volatility. If you would invest 5,381 in Columbia Seligman Global on August 29, 2024 and sell it today you would earn a total of 2,901 from holding Columbia Seligman Global or generate 53.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.71% |
| Values | Daily Returns |
Exela Technologies Preferred vs. Columbia Seligman Global
Performance |
| Timeline |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Columbia Seligman Global |
Exela Technologies and Columbia Seligman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exela Technologies and Columbia Seligman
The main advantage of trading using opposite Exela Technologies and Columbia Seligman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies position performs unexpectedly, Columbia Seligman 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 Seligman will offset losses from the drop in Columbia Seligman's long position.| Exela Technologies vs. Lytus Technologies Holdings | Exela Technologies vs. Quoin Pharmaceuticals Ltd | Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Soluna Holdings Preferred |
| Columbia Seligman vs. Aqr Large Cap | Columbia Seligman vs. Legg Mason Bw | Columbia Seligman vs. T Rowe Price | Columbia Seligman vs. Goldman Sachs Large |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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