Correlation Between Calamos Global and Columbia
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Columbia 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 Global and Columbia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Global Equity and Columbia Treasury Index, you can compare the effects of market volatilities on Calamos Global and Columbia 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 Global with a short position of Columbia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Columbia.
Diversification Opportunities for Calamos Global and Columbia
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Columbia is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Columbia Treasury Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Treasury Index and Calamos Global 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 Global Equity are associated (or correlated) with Columbia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Treasury Index has no effect on the direction of Calamos Global i.e., Calamos Global and Columbia go up and down completely randomly.
Pair Corralation between Calamos Global and Columbia
Assuming the 90 days horizon Calamos Global Equity is expected to generate 3.04 times more return on investment than Columbia. However, Calamos Global is 3.04 times more volatile than Columbia Treasury Index. It trades about 0.13 of its potential returns per unit of risk. Columbia Treasury Index is currently generating about 0.05 per unit of risk. If you would invest 1,411 in Calamos Global Equity on September 3, 2024 and sell it today you would earn a total of 555.00 from holding Calamos Global Equity or generate 39.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. Columbia Treasury Index
Performance |
| Timeline |
| Calamos Global Equity |
| Columbia Treasury Index |
Calamos Global and Columbia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Columbia
The main advantage of trading using opposite Calamos Global and Columbia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Columbia 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 will offset losses from the drop in Columbia's long position.| Calamos Global vs. Allianzgi Technology Fund | Calamos Global vs. Firsthand Technology Opportunities | Calamos Global vs. Red Oak Technology | Calamos Global vs. Mfs Technology Fund |
| Columbia vs. Columbia Large Cap | Columbia vs. Columbia Large Cap | Columbia vs. Columbia International Value | Columbia vs. Columbia Large Cap |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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