Correlation Between Calamos Dynamic and Columbia Small
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Columbia Small 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 Small 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 Small Cap, you can compare the effects of market volatilities on Calamos Dynamic and Columbia Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Columbia Small.
Diversification Opportunities for Calamos Dynamic and Columbia Small
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Columbia is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Columbia Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Small Cap 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 Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Small Cap has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Columbia Small go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Columbia Small
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 0.4 times more return on investment than Columbia Small. However, Calamos Dynamic Convertible is 2.51 times less risky than Columbia Small. It trades about -0.15 of its potential returns per unit of risk. Columbia Small Cap is currently generating about -0.2 per unit of risk. If you would invest 2,462 in Calamos Dynamic Convertible on September 13, 2024 and sell it today you would lose (69.00) from holding Calamos Dynamic Convertible or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Columbia Small Cap
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Columbia Small Cap |
Calamos Dynamic and Columbia Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Columbia Small
The main advantage of trading using opposite Calamos Dynamic and Columbia Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Columbia Small 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 Small will offset losses from the drop in Columbia Small'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 Small vs. Columbia Porate Income | Columbia Small vs. Columbia Ultra Short | Columbia Small vs. Columbia Treasury Index | Columbia Small vs. Multi Manager Directional Alternative |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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