Correlation Between Qs International and Columbia Global

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

By analyzing existing cross correlation between Qs International Equity and Columbia Global Dividend, you can compare the effects of market volatilities on Qs International 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 Qs International with a short position of Columbia Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qs International and Columbia Global.

Diversification Opportunities for Qs International and Columbia Global

0.99

Correlation Coefficient

Qs International  Columbia Global

No risk reduction

The 3 months correlation between LGFEX and Columbia is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Qs International Equity and Columbia Global Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Global Dividend and Qs International 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 Qs International Equity 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 Dividend has no effect on the direction of Qs International i.e., Qs International and Columbia Global go up and down completely randomly.

Pair Corralation between Qs International and Columbia Global

Assuming the 90 days horizon Qs International Equity is expected to generate 1.01 times more return on investment than Columbia Global. However, Qs International is 1.01 times more volatile than Columbia Global Dividend. It trades about 0.19 of its potential returns per unit of risk. Columbia Global Dividend is currently generating about 0.13 per unit of risk. If you would invest  1,726  in Qs International Equity on December 29, 2024 and sell it today you would earn a total of  178.00  from holding Qs International Equity or generate 10.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Qs International Equity  vs.  Columbia Global Dividend

Qs International Equity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Qs International Equity are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Qs International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Columbia Global Dividend

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Columbia Global Dividend are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Columbia Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Qs International and Columbia Global

The main advantage of trading using opposite Qs International and Columbia Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qs International 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.

The idea behind Qs International Equity and Columbia Global Dividend 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 Transaction History module to view history of all your transactions and understand their impact on performance.