Correlation Between Calamos Dynamic and Columbia Total
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Columbia Total 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 Total 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 Total Return, you can compare the effects of market volatilities on Calamos Dynamic and Columbia Total 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 Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Columbia Total.
Diversification Opportunities for Calamos Dynamic and Columbia Total
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Columbia is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Columbia Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Total Return 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 Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Total Return has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Columbia Total go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Columbia Total
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Columbia Total. In addition to that, Calamos Dynamic is 6.08 times more volatile than Columbia Total Return. It trades about -0.08 of its total potential returns per unit of risk. Columbia Total Return is currently generating about -0.16 per unit of volatility. If you would invest 3,035 in Columbia Total Return on January 12, 2025 and sell it today you would lose (48.00) from holding Columbia Total Return or give up 1.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Columbia Total Return
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Columbia Total Return |
Calamos Dynamic and Columbia Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Columbia Total
The main advantage of trading using opposite Calamos Dynamic and Columbia Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Columbia Total 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 Total will offset losses from the drop in Columbia Total'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 |
| Columbia Total vs. Columbia Corporate Income | Columbia Total vs. Columbia Ultra Short | Columbia Total vs. Columbia Dividend Opportunity | Columbia Total vs. Columbia Integrated Large |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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