Correlation Between Columbia Capital and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Columbia Capital 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 Capital 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 Capital Allocation and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Columbia Capital 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 Capital with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Capital and Calamos Dynamic.
Diversification Opportunities for Columbia Capital and Calamos Dynamic
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Columbia and Calamos is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Capital Allocation 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 Capital 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 Capital Allocation 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 Capital i.e., Columbia Capital and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Columbia Capital and Calamos Dynamic
Assuming the 90 days horizon Columbia Capital Allocation is expected to generate 0.6 times more return on investment than Calamos Dynamic. However, Columbia Capital Allocation is 1.66 times less risky than Calamos Dynamic. It trades about 0.1 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.05 per unit of risk. If you would invest 1,311 in Columbia Capital Allocation on August 30, 2024 and sell it today you would earn a total of 18.00 from holding Columbia Capital Allocation or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Columbia Capital Allocation vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Columbia Capital All |
| Calamos Dynamic Conv |
Columbia Capital and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Capital and Calamos Dynamic
The main advantage of trading using opposite Columbia Capital and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Capital 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 Capital vs. Virtus Real Estate | Columbia Capital vs. Heitman Real Estate | Columbia Capital vs. Forum Real Estate | Columbia Capital vs. Tiaa Cref Real Estate |
| Calamos Dynamic vs. Calamos LongShort Equity | Calamos Dynamic vs. Calamos Convertible And | Calamos Dynamic vs. Calamos Global Total | Calamos Dynamic vs. DTF Tax Free |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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