Correlation Between Columbia Select and Guggenheim Styleplus

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

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

Diversification Opportunities for Columbia Select and Guggenheim Styleplus

-0.27

Correlation Coefficient

Columbia Select  Guggenheim Styleplus

Very good diversification

The 3 months correlation between Columbia and Guggenheim is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Select Large Cap and Guggenheim Styleplus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Styleplus and Columbia Select 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 Select Large Cap are associated (or correlated) with Guggenheim Styleplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Styleplus has no effect on the direction of Columbia Select i.e., Columbia Select and Guggenheim Styleplus go up and down completely randomly.

Pair Corralation between Columbia Select and Guggenheim Styleplus

If you would invest  3,844  in Columbia Select Large Cap on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Columbia Select Large Cap or generate 0.0% return on investment over 90 days.

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

Columbia Select Large Cap  vs.  Guggenheim Styleplus

Columbia Select Large

Risk-Adjusted Performance

0 of 100

OK

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

Guggenheim Styleplus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Guggenheim Styleplus 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 forward 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.

Pair Trading with Columbia Select and Guggenheim Styleplus

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

The idea behind Columbia Select Large Cap and Guggenheim Styleplus 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.