Correlation Between Summit Global and Columbia Adaptive
Can any of the company-specific risk be diversified away by investing in both Summit Global and Columbia Adaptive 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 Summit Global and Columbia Adaptive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Global Investments and Columbia Adaptive Risk, you can compare the effects of market volatilities on Summit Global and Columbia Adaptive 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 Summit Global with a short position of Columbia Adaptive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Global and Columbia Adaptive.
Diversification Opportunities for Summit Global and Columbia Adaptive
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Summit and Columbia is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Summit Global Investments and Columbia Adaptive Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Adaptive Risk and Summit 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 Summit Global Investments are associated (or correlated) with Columbia Adaptive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Adaptive Risk has no effect on the direction of Summit Global i.e., Summit Global and Columbia Adaptive go up and down completely randomly.
Pair Corralation between Summit Global and Columbia Adaptive
Assuming the 90 days horizon Summit Global is expected to generate 1.1 times less return on investment than Columbia Adaptive. In addition to that, Summit Global is 1.24 times more volatile than Columbia Adaptive Risk. It trades about 0.13 of its total potential returns per unit of risk. Columbia Adaptive Risk is currently generating about 0.17 per unit of volatility. If you would invest 1,036 in Columbia Adaptive Risk on September 1, 2025 and sell it today you would earn a total of 52.00 from holding Columbia Adaptive Risk or generate 5.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Summit Global Investments vs. Columbia Adaptive Risk
Performance |
| Timeline |
| Summit Global Investments |
| Columbia Adaptive Risk |
Summit Global and Columbia Adaptive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Global and Columbia Adaptive
The main advantage of trading using opposite Summit Global and Columbia Adaptive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Global position performs unexpectedly, Columbia Adaptive 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 Adaptive will offset losses from the drop in Columbia Adaptive's long position.| Summit Global vs. Guidemark Large Cap | Summit Global vs. Gmo Equity Allocation | Summit Global vs. Franklin Moderate Allocation | Summit Global vs. Mutual Of America |
| Columbia Adaptive vs. Smallcap Fund Fka | Columbia Adaptive vs. Touchstone Small Cap | Columbia Adaptive vs. Ab Small Cap | Columbia Adaptive vs. Franklin Small Cap |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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