Correlation Between Nogin and Columbia Seligman

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

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

Diversification Opportunities for Nogin and Columbia Seligman

-0.56

Correlation Coefficient

Nogin  Columbia Seligman

Excellent diversification

The 3 months correlation between Nogin and Columbia is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nogin Inc and Columbia Seligman Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Seligman Global and Nogin 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 Nogin Inc 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 Global has no effect on the direction of Nogin i.e., Nogin and Columbia Seligman go up and down completely randomly.

Pair Corralation between Nogin and Columbia Seligman

If you would invest  0.67  in Nogin Inc on February 7, 2024 and sell it today you would earn a total of  0.00  from holding Nogin Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.55%
Values	Daily Returns

Nogin Inc  vs.  Columbia Seligman Global

Nogin Inc

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Nogin Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively fragile basic indicators, Nogin reported solid returns over the last few months and may actually be approaching a breakup point.

Columbia Seligman Global

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Columbia Seligman Global are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Columbia Seligman is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nogin and Columbia Seligman

The main advantage of trading using opposite Nogin and Columbia Seligman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nogin 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.

The idea behind Nogin Inc and Columbia Seligman Global 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.