Correlation Between Aqr Tm and Columbia Seligman
Can any of the company-specific risk be diversified away by investing in both Aqr Tm and Columbia Seligman 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 Aqr Tm and Columbia Seligman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Tm Emerging and Columbia Seligman Technology, you can compare the effects of market volatilities on Aqr Tm and Columbia Seligman 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 Aqr Tm with a short position of Columbia Seligman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Tm and Columbia Seligman.
Diversification Opportunities for Aqr Tm and Columbia Seligman
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and Columbia is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Tm Emerging and Columbia Seligman Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Seligman and Aqr Tm 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 Aqr Tm Emerging are associated (or correlated) with Columbia Seligman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Seligman has no effect on the direction of Aqr Tm i.e., Aqr Tm and Columbia Seligman go up and down completely randomly.
Pair Corralation between Aqr Tm and Columbia Seligman
Assuming the 90 days horizon Aqr Tm is expected to generate 2.15 times less return on investment than Columbia Seligman. But when comparing it to its historical volatility, Aqr Tm Emerging is 1.9 times less risky than Columbia Seligman. It trades about 0.15 of its potential returns per unit of risk. Columbia Seligman Technology is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 17,193 in Columbia Seligman Technology on September 3, 2025 and sell it today you would earn a total of 3,414 from holding Columbia Seligman Technology or generate 19.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Tm Emerging vs. Columbia Seligman Technology
Performance |
| Timeline |
| Aqr Tm Emerging |
| Columbia Seligman |
Aqr Tm and Columbia Seligman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Tm and Columbia Seligman
The main advantage of trading using opposite Aqr Tm and Columbia Seligman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Tm position performs unexpectedly, Columbia Seligman 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 Seligman will offset losses from the drop in Columbia Seligman's long position.| Aqr Tm vs. Aqr Large Cap | Aqr Tm vs. Aqr Large Cap | Aqr Tm vs. Aqr International Defensive | Aqr Tm vs. Aqr International Defensive |
| Columbia Seligman vs. Fbjygx | Columbia Seligman vs. Rbc Emerging Markets | Columbia Seligman vs. Fkhemx | Columbia Seligman vs. Balanced Fund Retail |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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