Correlation Between Global Gold and Columbia High
Can any of the company-specific risk be diversified away by investing in both Global Gold and Columbia 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 Global Gold and Columbia High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Gold Fund and Columbia High Yield, you can compare the effects of market volatilities on Global Gold and Columbia 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 Global Gold with a short position of Columbia High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gold and Columbia High.
Diversification Opportunities for Global Gold and Columbia High
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Columbia is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Global Gold Fund and Columbia High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia High Yield and Global Gold 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 Global Gold Fund are associated (or correlated) with Columbia High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia High Yield has no effect on the direction of Global Gold i.e., Global Gold and Columbia High go up and down completely randomly.
Pair Corralation between Global Gold and Columbia High
Assuming the 90 days horizon Global Gold Fund is expected to generate 10.2 times more return on investment than Columbia High. However, Global Gold is 10.2 times more volatile than Columbia High Yield. It trades about 0.09 of its potential returns per unit of risk. Columbia High Yield is currently generating about 0.23 per unit of risk. If you would invest 1,678 in Global Gold Fund on April 3, 2025 and sell it today you would earn a total of 225.00 from holding Global Gold Fund or generate 13.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Gold Fund vs. Columbia High Yield
Performance |
| Timeline |
| Global Gold Fund |
| Columbia High Yield |
Global Gold and Columbia High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Gold and Columbia High
The main advantage of trading using opposite Global Gold and Columbia High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gold position performs unexpectedly, Columbia 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 Columbia High will offset losses from the drop in Columbia High's long position.| Global Gold vs. Pax High Yield | Global Gold vs. Guggenheim High Yield | Global Gold vs. T Rowe Price | Global Gold vs. Jpmorgan High Yield |
| Columbia High vs. Ab Global Bond | Columbia High vs. Multisector Bond Sma | Columbia High vs. Ab Bond Inflation | Columbia High vs. Barings High Yield |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |