Correlation Between Columbia Mid and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Columbia Mid and Calamos Dynamic 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 Mid and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Mid Cap and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Columbia Mid and Calamos Dynamic 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 Mid with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Mid and Calamos Dynamic.
Diversification Opportunities for Columbia Mid and Calamos Dynamic
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Columbia and Calamos is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Mid Cap and Calamos Dynamic Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dynamic Conv and Columbia Mid 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 Mid Cap are associated (or correlated) with Calamos Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dynamic Conv has no effect on the direction of Columbia Mid i.e., Columbia Mid and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Columbia Mid and Calamos Dynamic
Assuming the 90 days horizon Columbia Mid is expected to generate 2.21 times less return on investment than Calamos Dynamic. In addition to that, Columbia Mid is 1.17 times more volatile than Calamos Dynamic Convertible. It trades about 0.05 of its total potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.13 per unit of volatility. If you would invest 2,095 in Calamos Dynamic Convertible on November 3, 2024 and sell it today you would earn a total of 342.00 from holding Calamos Dynamic Convertible or generate 16.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Mid Cap vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Columbia Mid Cap |
| Calamos Dynamic Conv |
Columbia Mid and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Mid and Calamos Dynamic
The main advantage of trading using opposite Columbia Mid and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Mid position performs unexpectedly, Calamos Dynamic 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 Dynamic will offset losses from the drop in Calamos Dynamic's long position.| Columbia Mid vs. Madison Diversified Income | Columbia Mid vs. Jhancock Diversified Macro | Columbia Mid vs. Harbor Diversified International | Columbia Mid vs. Tax Managed Mid Small |
| Calamos Dynamic vs. Calamos Convertible Opportunities | Calamos Dynamic vs. Calamos Global Dynamic | Calamos Dynamic vs. Calamos Strategic Total | Calamos Dynamic vs. Calamos LongShort Equity |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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