Correlation Between Columbia Convertible and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Columbia Convertible 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 Convertible 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 Convertible Securities and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Columbia Convertible 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 Convertible with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Convertible and Calamos Dynamic.
Diversification Opportunities for Columbia Convertible and Calamos Dynamic
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 Convertible Securitie 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 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 Convertible Securities 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 Convertible i.e., Columbia Convertible and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Columbia Convertible and Calamos Dynamic
Assuming the 90 days horizon Columbia Convertible Securities is expected to generate 0.78 times more return on investment than Calamos Dynamic. However, Columbia Convertible Securities is 1.28 times less risky than Calamos Dynamic. It trades about 0.24 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.03 per unit of risk. If you would invest 2,184 in Columbia Convertible Securities on November 3, 2024 and sell it today you would earn a total of 72.00 from holding Columbia Convertible Securities or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Convertible Securitie vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Columbia Convertible |
| Calamos Dynamic Conv |
Columbia Convertible and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Convertible and Calamos Dynamic
The main advantage of trading using opposite Columbia Convertible and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Convertible 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 Convertible vs. Ultra Short Fixed Income | Columbia Convertible vs. Transamerica Short Term Bond | Columbia Convertible vs. Old Westbury Short Term | Columbia Convertible vs. Alpine Ultra Short |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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