Correlation Between Columbia Acorn and Siit High

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

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

Diversification Opportunities for Columbia Acorn and Siit High

-0.5

Correlation Coefficient

Columbia Acorn  Siit High

Very good diversification

The 3 months correlation between Columbia and Siit is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Acorn European and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield and Columbia Acorn 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 Acorn European are associated (or correlated) with Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Columbia Acorn i.e., Columbia Acorn and Siit High go up and down completely randomly.

Pair Corralation between Columbia Acorn and Siit High

If you would invest  2,502  in Columbia Acorn European on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Columbia Acorn European or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

Columbia Acorn European  vs.  Siit High Yield

Columbia Acorn European

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Columbia Acorn European has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's technical and fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Siit High Yield

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Siit High Yield are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Siit High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Columbia Acorn and Siit High

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

The idea behind Columbia Acorn European and Siit High Yield 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.