Correlation Between Columbia Corporate and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Columbia Corporate and Calamos 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 Columbia Corporate and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Porate Income and Calamos Convertible And, you can compare the effects of market volatilities on Columbia Corporate and Calamos 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 Columbia Corporate with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Corporate and Calamos Convertible.
Diversification Opportunities for Columbia Corporate and Calamos Convertible
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Columbia and Calamos is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Porate Income and Calamos Convertible And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible And and Columbia Corporate 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 Columbia Porate Income are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible And has no effect on the direction of Columbia Corporate i.e., Columbia Corporate and Calamos Convertible go up and down completely randomly.
Pair Corralation between Columbia Corporate and Calamos Convertible
Assuming the 90 days horizon Columbia Porate Income is expected to under-perform the Calamos Convertible. But the mutual fund apears to be less risky and, when comparing its historical volatility, Columbia Porate Income is 2.94 times less risky than Calamos Convertible. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Calamos Convertible And is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,120 in Calamos Convertible And on August 28, 2024 and sell it today you would earn a total of 113.00 from holding Calamos Convertible And or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Porate Income vs. Calamos Convertible And
Performance |
| Timeline |
| Columbia Porate Income |
| Calamos Convertible And |
Columbia Corporate and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Corporate and Calamos Convertible
The main advantage of trading using opposite Columbia Corporate and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Corporate position performs unexpectedly, Calamos 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 Calamos Convertible will offset losses from the drop in Calamos Convertible's long position.| Columbia Corporate vs. Columbia Porate Income | Columbia Corporate vs. Columbia Ultra Short | Columbia Corporate vs. Columbia Ultra Short | Columbia Corporate vs. Columbia Treasury Index |
| Calamos Convertible vs. Calamos Global Dynamic | Calamos Convertible vs. Calamos Strategic Total | Calamos Convertible vs. Calamos LongShort Equity | Calamos Convertible vs. DTF Tax Free |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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