Correlation Between Calamos Convertible and Columbia Convertible
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Columbia Convertible 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 Convertible and Columbia Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Vertible Fund and Columbia Vertible Securities, you can compare the effects of market volatilities on Calamos Convertible and Columbia Convertible 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 Convertible with a short position of Columbia Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Columbia Convertible.
Diversification Opportunities for Calamos Convertible and Columbia Convertible
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Columbia is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Columbia Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Convertible and Calamos Convertible 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 Vertible Fund are associated (or correlated) with Columbia Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Convertible has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Columbia Convertible go up and down completely randomly.
Pair Corralation between Calamos Convertible and Columbia Convertible
Assuming the 90 days horizon Calamos Convertible is expected to generate 1.13 times less return on investment than Columbia Convertible. But when comparing it to its historical volatility, Calamos Vertible Fund is 1.02 times less risky than Columbia Convertible. It trades about 0.07 of its potential returns per unit of risk. Columbia Vertible Securities is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,822 in Columbia Vertible Securities on August 25, 2024 and sell it today you would earn a total of 423.00 from holding Columbia Vertible Securities or generate 23.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Calamos Vertible Fund vs. Columbia Vertible Securities
Performance |
| Timeline |
| Calamos Convertible |
| Columbia Convertible |
Calamos Convertible and Columbia Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Convertible and Columbia Convertible
The main advantage of trading using opposite Calamos Convertible and Columbia Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Columbia Convertible 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 Convertible will offset losses from the drop in Columbia Convertible's long position.| Calamos Convertible vs. Calvert High Yield | Calamos Convertible vs. Alliancebernstein Global High | Calamos Convertible vs. T Rowe Price | Calamos Convertible vs. Needham Aggressive Growth |
| Columbia Convertible vs. Franklin Vertible Securities | Columbia Convertible vs. Columbia Select Large | Columbia Convertible vs. Calamos Vertible Fund | Columbia Convertible vs. Mainstay Vertible Fund |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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