Correlation Between Calamos Dynamic and Mfs Total
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Mfs Total 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 Calamos Dynamic and Mfs Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Dynamic Convertible and Mfs Total Return, you can compare the effects of market volatilities on Calamos Dynamic and Mfs Total 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 Calamos Dynamic with a short position of Mfs Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Mfs Total.
Diversification Opportunities for Calamos Dynamic and Mfs Total
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calamos and Mfs is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Mfs Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Total Return and Calamos Dynamic 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 Calamos Dynamic Convertible are associated (or correlated) with Mfs Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Total Return has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Mfs Total go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Mfs Total
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 2.74 times more return on investment than Mfs Total. However, Calamos Dynamic is 2.74 times more volatile than Mfs Total Return. It trades about 0.07 of its potential returns per unit of risk. Mfs Total Return is currently generating about 0.05 per unit of risk. If you would invest 1,684 in Calamos Dynamic Convertible on September 12, 2024 and sell it today you would earn a total of 697.00 from holding Calamos Dynamic Convertible or generate 41.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Mfs Total Return
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Mfs Total Return |
Calamos Dynamic and Mfs Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Mfs Total
The main advantage of trading using opposite Calamos Dynamic and Mfs Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Mfs Total 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 Mfs Total will offset losses from the drop in Mfs Total's long position.| Calamos Dynamic vs. Calamos Convertible Opportunities | Calamos Dynamic vs. Calamos Global Dynamic | Calamos Dynamic vs. Calamos Strategic Total | Calamos Dynamic vs. Calamos LongShort Equity |
| Mfs Total vs. Metropolitan West Total | Mfs Total vs. SCOR PK | Mfs Total vs. Morningstar Unconstrained Allocation | Mfs Total vs. Thrivent High Yield |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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