Correlation Between Simt Us and Columbia Global

Can any of the company-specific risk be diversified away by investing in both Simt Us and Columbia Global 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 Simt Us and Columbia Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Simt Managed Volatility and Columbia Global Dividend, you can compare the effects of market volatilities on Simt Us and Columbia Global 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 Simt Us with a short position of Columbia Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Us and Columbia Global.

Diversification Opportunities for Simt Us and Columbia Global

0.66

Correlation Coefficient

Simt Us  Columbia Global

Poor diversification

The 3 months correlation between Simt and Columbia is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Simt Managed Volatility and Columbia Global Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Global Dividend and Simt Us 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 Simt Managed Volatility are associated (or correlated) with Columbia Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Global Dividend has no effect on the direction of Simt Us i.e., Simt Us and Columbia Global go up and down completely randomly.

Pair Corralation between Simt Us and Columbia Global

Assuming the 90 days horizon Simt Us is expected to generate 2.67 times less return on investment than Columbia Global. But when comparing it to its historical volatility, Simt Managed Volatility is 1.32 times less risky than Columbia Global. It trades about 0.07 of its potential returns per unit of risk. Columbia Global Dividend is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  2,143  in Columbia Global Dividend on July 26, 2025 and sell it today you would earn a total of  124.00  from holding Columbia Global Dividend or generate 5.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Simt Managed Volatility  vs.  Columbia Global Dividend

Simt Managed Volatility

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Managed Volatility are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Columbia Global Dividend

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Columbia Global Dividend are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Columbia Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Simt Us and Columbia Global

The main advantage of trading using opposite Simt Us and Columbia Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Us position performs unexpectedly, Columbia Global 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 Global will offset losses from the drop in Columbia Global's long position.

The idea behind Simt Managed Volatility and Columbia Global Dividend 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.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.