Correlation Between First Colombia and All Things

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

By analyzing existing cross correlation between First Colombia Gold and All Things Mobile, you can compare the effects of market volatilities on First Colombia and All Things 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 First Colombia with a short position of All Things. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Colombia and All Things.

Diversification Opportunities for First Colombia and All Things

-0.08

Correlation Coefficient

First Colombia  All Things

Good diversification

The 3 months correlation between First and All is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding First Colombia Gold and All Things Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All Things Mobile and First Colombia 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 First Colombia Gold are associated (or correlated) with All Things. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Things Mobile has no effect on the direction of First Colombia i.e., First Colombia and All Things go up and down completely randomly.

Pair Corralation between First Colombia and All Things

Given the investment horizon of 90 days First Colombia Gold is expected to generate 40.79 times more return on investment than All Things. However, First Colombia is 40.79 times more volatile than All Things Mobile. It trades about 0.32 of its potential returns per unit of risk. All Things Mobile is currently generating about 0.01 per unit of risk. If you would invest  0.01  in First Colombia Gold on May 16, 2025 and sell it today you would earn a total of  0.00  from holding First Colombia Gold or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

First Colombia Gold  vs.  All Things Mobile

First Colombia Gold

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in First Colombia Gold are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, First Colombia exhibited solid returns over the last few months and may actually be approaching a breakup point.

All Things Mobile

Risk-Adjusted Performance

Weakest

Over the last 90 days All Things Mobile has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, All Things is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with First Colombia and All Things

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

The idea behind First Colombia Gold and All Things Mobile 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.