Correlation Between Columbia Real and Calamos International
Can any of the company-specific risk be diversified away by investing in both Columbia Real 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 Real 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 Real Estate and Calamos International Growth, you can compare the effects of market volatilities on Columbia Real 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 Real with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Real and Calamos International.
Diversification Opportunities for Columbia Real and Calamos International
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Columbia and Calamos is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Real Estate 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 Real 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 Real Estate 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 Real i.e., Columbia Real and Calamos International go up and down completely randomly.
Pair Corralation between Columbia Real and Calamos International
Assuming the 90 days horizon Columbia Real Estate is expected to under-perform the Calamos International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Columbia Real Estate is 1.01 times less risky than Calamos International. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Calamos International Growth is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,376 in Calamos International Growth on September 12, 2024 and sell it today you would lose (24.00) from holding Calamos International Growth or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Real Estate vs. Calamos International Growth
Performance |
| Timeline |
| Columbia Real Estate |
| Calamos International |
Columbia Real and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Real and Calamos International
The main advantage of trading using opposite Columbia Real and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Real 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 Real vs. Barings Emerging Markets | Columbia Real vs. Vy Jpmorgan Emerging | Columbia Real vs. Origin Emerging Markets | Columbia Real vs. Mid Cap 15x Strategy |
| Calamos International vs. Multimedia Portfolio Multimedia | Calamos International vs. Rbc Global Equity | Calamos International vs. Calamos Global Equity | Calamos International vs. Balanced Fund Retail |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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