Correlation Between Valic Company and Columbia High
Can any of the company-specific risk be diversified away by investing in both Valic Company 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 Valic Company and Columbia High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valic Company I and Columbia High Yield, you can compare the effects of market volatilities on Valic Company 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 Valic Company with a short position of Columbia High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Columbia High.
Diversification Opportunities for Valic Company and Columbia High
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valic and Columbia is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I 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 Valic Company 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 Valic Company I 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 Valic Company i.e., Valic Company and Columbia High go up and down completely randomly.
Pair Corralation between Valic Company and Columbia High
Assuming the 90 days horizon Valic Company I is expected to generate 5.47 times more return on investment than Columbia High. However, Valic Company is 5.47 times more volatile than Columbia High Yield. It trades about 0.1 of its potential returns per unit of risk. Columbia High Yield is currently generating about 0.43 per unit of risk. If you would invest 1,195 in Valic Company I on July 25, 2025 and sell it today you would earn a total of 86.00 from holding Valic Company I or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Columbia High Yield
Performance |
| Timeline |
| Valic Company I |
| Columbia High Yield |
Valic Company and Columbia High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Columbia High
The main advantage of trading using opposite Valic Company and Columbia High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company 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.| Valic Company vs. World Precious Minerals | Valic Company vs. Vy Goldman Sachs | Valic Company vs. Gabelli Gold Fund | Valic Company vs. Great West Goldman Sachs |
| Columbia High vs. Columbia Porate Income | Columbia High vs. Columbia Ultra Short | Columbia High vs. Columbia Treasury Index | Columbia High vs. Multi Manager Directional Alternative |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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