Correlation Between Mfs International and Calamos International
Can any of the company-specific risk be diversified away by investing in both Mfs International and Calamos International 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 International and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs International New and Calamos International Small, you can compare the effects of market volatilities on Mfs International and Calamos International 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 International with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs International and Calamos International.
Diversification Opportunities for Mfs International and Calamos International
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mfs and Calamos is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Mfs International New and Calamos International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Mfs International 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 International New are associated (or correlated) with Calamos International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Mfs International i.e., Mfs International and Calamos International go up and down completely randomly.
Pair Corralation between Mfs International and Calamos International
Assuming the 90 days horizon Mfs International New is expected to generate 0.72 times more return on investment than Calamos International. However, Mfs International New is 1.39 times less risky than Calamos International. It trades about 0.23 of its potential returns per unit of risk. Calamos International Small is currently generating about -0.05 per unit of risk. If you would invest 2,837 in Mfs International New on November 27, 2024 and sell it today you would earn a total of 77.00 from holding Mfs International New or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs International New vs. Calamos International Small
Performance |
| Timeline |
| Mfs International New |
| Calamos International |
Mfs International and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs International and Calamos International
The main advantage of trading using opposite Mfs International and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs International position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.| Mfs International vs. Hartford Healthcare Hls | Mfs International vs. Schwab Health Care | Mfs International vs. Eaton Vance Worldwide | Mfs International vs. Health Care Ultrasector |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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