Correlation Between Bancolombia and Xerox Corp
Can any of the company-specific risk be diversified away by investing in both Bancolombia and Xerox Corp 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 Bancolombia and Xerox Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bancolombia SA ADR and Xerox Corp, you can compare the effects of market volatilities on Bancolombia and Xerox Corp 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 Bancolombia with a short position of Xerox Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bancolombia and Xerox Corp.
Diversification Opportunities for Bancolombia and Xerox Corp
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bancolombia and Xerox is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bancolombia SA ADR and Xerox Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xerox Corp and Bancolombia 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 Bancolombia SA ADR are associated (or correlated) with Xerox Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xerox Corp has no effect on the direction of Bancolombia i.e., Bancolombia and Xerox Corp go up and down completely randomly.
Pair Corralation between Bancolombia and Xerox Corp
Considering the 90-day investment horizon Bancolombia SA ADR is expected to generate 0.49 times more return on investment than Xerox Corp. However, Bancolombia SA ADR is 2.05 times less risky than Xerox Corp. It trades about 0.2 of its potential returns per unit of risk. Xerox Corp is currently generating about -0.08 per unit of risk. If you would invest 3,167 in Bancolombia SA ADR on December 29, 2023 and sell it today you would earn a total of 331.00 from holding Bancolombia SA ADR or generate 10.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bancolombia SA ADR vs. Xerox Corp
Performance |
Timeline |
Bancolombia SA ADR |
Xerox Corp |
Bancolombia and Xerox Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bancolombia and Xerox Corp
The main advantage of trading using opposite Bancolombia and Xerox Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bancolombia position performs unexpectedly, Xerox Corp 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 Xerox Corp will offset losses from the drop in Xerox Corp's long position.Bancolombia vs. Middlefield Banc | Bancolombia vs. Merchants Bancorp | Bancolombia vs. Mercantile Bank | Bancolombia vs. MetroCity Bankshares |
Xerox Corp vs. Desktop Metal | Xerox Corp vs. Fabrinet | Xerox Corp vs. Kimball Electronics | Xerox Corp vs. Knowles Cor |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
CEOs Directory Screen CEOs from public companies around the world | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |