Correlation Between Calamos Global and MFS Investment
Can any of the company-specific risk be diversified away by investing in both Calamos Global and MFS Investment 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 Global and MFS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Global Total and MFS Investment Grade, you can compare the effects of market volatilities on Calamos Global and MFS Investment 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 Global with a short position of MFS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and MFS Investment.
Diversification Opportunities for Calamos Global and MFS Investment
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and MFS is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Total and MFS Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Investment Grade and Calamos Global 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 Global Total are associated (or correlated) with MFS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Investment Grade has no effect on the direction of Calamos Global i.e., Calamos Global and MFS Investment go up and down completely randomly.
Pair Corralation between Calamos Global and MFS Investment
Considering the 90-day investment horizon Calamos Global Total is expected to under-perform the MFS Investment. In addition to that, Calamos Global is 1.99 times more volatile than MFS Investment Grade. It trades about -0.1 of its total potential returns per unit of risk. MFS Investment Grade is currently generating about 0.19 per unit of volatility. If you would invest 801.00 in MFS Investment Grade on August 31, 2024 and sell it today you would earn a total of 20.00 from holding MFS Investment Grade or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Total vs. MFS Investment Grade
Performance |
| Timeline |
| Calamos Global Total |
| MFS Investment Grade |
Calamos Global and MFS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and MFS Investment
The main advantage of trading using opposite Calamos Global and MFS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, MFS Investment 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 Investment will offset losses from the drop in MFS Investment's long position.| Calamos Global vs. MFS Investment Grade | Calamos Global vs. Eaton Vance Municipal | Calamos Global vs. DTF Tax Free | Calamos Global vs. HUMANA INC |
| MFS Investment vs. HUMANA INC | MFS Investment vs. SCOR PK | MFS Investment vs. Aquagold International | MFS Investment 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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