Correlation Between Columbia Large and Calamos International
Can any of the company-specific risk be diversified away by investing in both Columbia Large and Calamos International 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 Large and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Large Cap and Calamos International Growth, you can compare the effects of market volatilities on Columbia Large and Calamos International 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 Large with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Large and Calamos International.
Diversification Opportunities for Columbia Large and Calamos International
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Columbia and Calamos is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Large Cap and Calamos International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Columbia Large 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 Large Cap are associated (or correlated) with Calamos International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Columbia Large i.e., Columbia Large and Calamos International go up and down completely randomly.
Pair Corralation between Columbia Large and Calamos International
Assuming the 90 days horizon Columbia Large is expected to generate 5.72 times less return on investment than Calamos International. But when comparing it to its historical volatility, Columbia Large Cap is 2.6 times less risky than Calamos International. It trades about 0.01 of its potential returns per unit of risk. Calamos International Growth is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,892 in Calamos International Growth on October 20, 2024 and sell it today you would earn a total of 277.00 from holding Calamos International Growth or generate 14.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 66.06% |
| Values | Daily Returns |
Columbia Large Cap vs. Calamos International Growth
Performance |
| Timeline |
| Columbia Large Cap |
| Calamos International |
Columbia Large and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Large and Calamos International
The main advantage of trading using opposite Columbia Large and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Large position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.| Columbia Large vs. Calamos Antetokounmpo Sustainable | Columbia Large vs. Innealta Capital Sector | Columbia Large vs. Calamos Antetokounmpo Sustainable | Columbia Large vs. Calamos Antetokounmpo Sustainable |
| Calamos International vs. Calamos Global Growth | Calamos International vs. Calamos Growth Income | Calamos International vs. Calamos Opportunistic Value | Calamos International vs. Calamos Global 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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