Correlation Between Columbia Flexible and Siit Large

Can any of the company-specific risk be diversified away by investing in both Columbia Flexible and Siit Large 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 Flexible and Siit Large into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Columbia Flexible Capital and Siit Large Cap, you can compare the effects of market volatilities on Columbia Flexible and Siit Large 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 Flexible with a short position of Siit Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Flexible and Siit Large.

Diversification Opportunities for Columbia Flexible and Siit Large

-0.29

Correlation Coefficient

Columbia Flexible  Siit Large

Very good diversification

The 3 months correlation between Columbia and Siit is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Flexible Capital and Siit Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Large Cap and Columbia Flexible 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 Flexible Capital are associated (or correlated) with Siit Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Large Cap has no effect on the direction of Columbia Flexible i.e., Columbia Flexible and Siit Large go up and down completely randomly.

Pair Corralation between Columbia Flexible and Siit Large

If you would invest  20,123  in Siit Large Cap on October 26, 2024 and sell it today you would earn a total of  238.00  from holding Siit Large Cap or generate 1.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.56%
Values	Daily Returns

Columbia Flexible Capital  vs.  Siit Large Cap

Columbia Flexible Capital

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Columbia Flexible Capital has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Columbia Flexible is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Siit Large Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siit Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Columbia Flexible and Siit Large

The main advantage of trading using opposite Columbia Flexible and Siit Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Flexible position performs unexpectedly, Siit Large 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 Siit Large will offset losses from the drop in Siit Large's long position.

The idea behind Columbia Flexible Capital and Siit Large Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.