Correlation Between Columbia Global and Voya Russia

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Can any of the company-specific risk be diversified away by investing in both Columbia Global and Voya Russia 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 Global and Voya Russia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Global Technology and Voya Russia Fund, you can compare the effects of market volatilities on Columbia Global and Voya Russia 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 Global with a short position of Voya Russia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Global and Voya Russia.

Diversification Opportunities for Columbia Global and Voya Russia

0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between Columbia and Voya is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Global Technology and Voya Russia Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Russia Fund and Columbia Global 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 Global Technology are associated (or correlated) with Voya Russia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Russia Fund has no effect on the direction of Columbia Global i.e., Columbia Global and Voya Russia go up and down completely randomly.

Pair Corralation between Columbia Global and Voya Russia

If you would invest  8,606  in Columbia Global Technology on September 23, 2024 and sell it today you would earn a total of  644.00  from holding Columbia Global Technology or generate 7.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy1.54%
ValuesDaily Returns

Columbia Global Technology  vs.  Voya Russia Fund

 Performance 
       Timeline  
Columbia Global Tech 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Columbia Global Technology are ranked lower than 7 (%) 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 January 2025.
Voya Russia Fund 

Risk-Adjusted Performance

0 of 100

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

Columbia Global and Voya Russia Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Columbia Global and Voya Russia

The main advantage of trading using opposite Columbia Global and Voya Russia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Global position performs unexpectedly, Voya Russia 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 Voya Russia will offset losses from the drop in Voya Russia's long position.
The idea behind Columbia Global Technology and Voya Russia Fund 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.
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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