Correlation Between MFS Investment and Calamos Global
Can any of the company-specific risk be diversified away by investing in both MFS Investment and Calamos Global 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 MFS Investment and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS Investment Grade and Calamos Global Dynamic, you can compare the effects of market volatilities on MFS Investment and Calamos Global 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 MFS Investment with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Calamos Global.
Diversification Opportunities for MFS Investment and Calamos Global
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MFS and Calamos is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Calamos Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Dynamic and MFS Investment 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 MFS Investment Grade are associated (or correlated) with Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Dynamic has no effect on the direction of MFS Investment i.e., MFS Investment and Calamos Global go up and down completely randomly.
Pair Corralation between MFS Investment and Calamos Global
Considering the 90-day investment horizon MFS Investment is expected to generate 1.6 times less return on investment than Calamos Global. But when comparing it to its historical volatility, MFS Investment Grade is 1.36 times less risky than Calamos Global. It trades about 0.06 of its potential returns per unit of risk. Calamos Global Dynamic is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Calamos Global Dynamic on August 24, 2024 and sell it today you would earn a total of 182.00 from holding Calamos Global Dynamic or generate 35.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS Investment Grade vs. Calamos Global Dynamic
Performance |
| Timeline |
| MFS Investment Grade |
| Calamos Global Dynamic |
MFS Investment and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Calamos Global
The main advantage of trading using opposite MFS Investment and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, Calamos Global 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 Global will offset losses from the drop in Calamos Global's long position.| MFS Investment vs. Invesco High Income | MFS Investment vs. Eaton Vance National | MFS Investment vs. Nuveen California Select | MFS Investment vs. Federated Premier Municipal |
| Calamos Global vs. Calamos Convertible And | Calamos Global vs. Calamos Strategic Total | Calamos Global vs. Calamos Dynamic Convertible | Calamos Global 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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