Correlation Between Calamos Dynamic and Columbia Diversified
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Columbia Diversified 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 Calamos Dynamic and Columbia Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Dynamic Convertible and Columbia Diversified Equity, you can compare the effects of market volatilities on Calamos Dynamic and Columbia Diversified 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 Calamos Dynamic with a short position of Columbia Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Columbia Diversified.
Diversification Opportunities for Calamos Dynamic and Columbia Diversified
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Columbia is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Columbia Diversified Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Diversified and Calamos Dynamic 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 Calamos Dynamic Convertible are associated (or correlated) with Columbia Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Diversified has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Columbia Diversified go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Columbia Diversified
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Columbia Diversified. In addition to that, Calamos Dynamic is 1.12 times more volatile than Columbia Diversified Equity. It trades about -0.11 of its total potential returns per unit of risk. Columbia Diversified Equity is currently generating about -0.05 per unit of volatility. If you would invest 1,644 in Columbia Diversified Equity on January 13, 2025 and sell it today you would lose (95.00) from holding Columbia Diversified Equity or give up 5.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Columbia Diversified Equity
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Columbia Diversified |
Calamos Dynamic and Columbia Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Columbia Diversified
The main advantage of trading using opposite Calamos Dynamic and Columbia Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Columbia Diversified 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 Diversified will offset losses from the drop in Columbia Diversified's long position.| Calamos Dynamic vs. Calamos Convertible Opportunities | Calamos Dynamic vs. Calamos Global Dynamic | Calamos Dynamic vs. Calamos Strategic Total | Calamos Dynamic vs. Calamos LongShort Equity |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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