Correlation Between Columbia Convertible and Calamos Timpani
Can any of the company-specific risk be diversified away by investing in both Columbia Convertible and Calamos Timpani 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 Convertible and Calamos Timpani into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Vertible Securities and Calamos Timpani Smid, you can compare the effects of market volatilities on Columbia Convertible and Calamos Timpani 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 Convertible with a short position of Calamos Timpani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Convertible and Calamos Timpani.
Diversification Opportunities for Columbia Convertible and Calamos Timpani
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Columbia and Calamos is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Vertible Securities and Calamos Timpani Smid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Timpani Smid and Columbia Convertible 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 Vertible Securities are associated (or correlated) with Calamos Timpani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Timpani Smid has no effect on the direction of Columbia Convertible i.e., Columbia Convertible and Calamos Timpani go up and down completely randomly.
Pair Corralation between Columbia Convertible and Calamos Timpani
Assuming the 90 days horizon Columbia Convertible is expected to generate 2.87 times less return on investment than Calamos Timpani. But when comparing it to its historical volatility, Columbia Vertible Securities is 3.82 times less risky than Calamos Timpani. It trades about 0.6 of its potential returns per unit of risk. Calamos Timpani Smid is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 1,427 in Calamos Timpani Smid on September 1, 2024 and sell it today you would earn a total of 270.00 from holding Calamos Timpani Smid or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Vertible Securities vs. Calamos Timpani Smid
Performance |
| Timeline |
| Columbia Convertible |
| Calamos Timpani Smid |
Columbia Convertible and Calamos Timpani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Convertible and Calamos Timpani
The main advantage of trading using opposite Columbia Convertible and Calamos Timpani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Convertible position performs unexpectedly, Calamos Timpani 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 Timpani will offset losses from the drop in Calamos Timpani's long position.| Columbia Convertible vs. Columbia Porate Income | Columbia Convertible vs. Columbia Ultra Short | Columbia Convertible vs. Columbia Ultra Short | Columbia Convertible vs. Columbia Treasury Index |
| Calamos Timpani vs. Absolute Convertible Arbitrage | Calamos Timpani vs. Columbia Vertible Securities | Calamos Timpani vs. Advent Claymore Convertible | Calamos Timpani vs. Fidelity Sai Convertible |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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