Correlation Between MFS Investment and Calamos Strategic
Can any of the company-specific risk be diversified away by investing in both MFS Investment and Calamos Strategic 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 Strategic 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 Strategic Total, you can compare the effects of market volatilities on MFS Investment and Calamos Strategic 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 Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Calamos Strategic.
Diversification Opportunities for MFS Investment and Calamos Strategic
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between MFS and Calamos is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total 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 Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of MFS Investment i.e., MFS Investment and Calamos Strategic go up and down completely randomly.
Pair Corralation between MFS Investment and Calamos Strategic
Considering the 90-day investment horizon MFS Investment is expected to generate 2.3 times less return on investment than Calamos Strategic. But when comparing it to its historical volatility, MFS Investment Grade is 1.69 times less risky than Calamos Strategic. It trades about 0.11 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,753 in Calamos Strategic Total on August 28, 2024 and sell it today you would earn a total of 48.00 from holding Calamos Strategic Total or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MFS Investment Grade vs. Calamos Strategic Total
Performance |
| Timeline |
| MFS Investment Grade |
| Calamos Strategic Total |
MFS Investment and Calamos Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Calamos Strategic
The main advantage of trading using opposite MFS Investment and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, Calamos Strategic 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 Strategic will offset losses from the drop in Calamos Strategic's long position.| MFS Investment vs. PowerUp Acquisition Corp | MFS Investment vs. Aurora Innovation | MFS Investment vs. HUMANA INC | MFS Investment vs. Aquagold International |
| Calamos Strategic vs. Calamos Convertible Opportunities | Calamos Strategic vs. Calamos Dynamic Convertible | Calamos Strategic vs. Calamos Global Dynamic | Calamos Strategic 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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