Correlation Between Calamos Dynamic and Mfs Mid

Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Mfs Mid 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 Mid 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 Mid Cap, you can compare the effects of market volatilities on Calamos Dynamic and Mfs Mid 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 Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Mfs Mid.

Diversification Opportunities for Calamos Dynamic and Mfs Mid

0.23

Correlation Coefficient

Calamos Dynamic  Mfs Mid

Modest diversification

The 3 months correlation between Calamos and Mfs is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Mfs Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Mid Cap 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 Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Mid Cap has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Mfs Mid go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Mfs Mid

Considering the 90-day investment horizon Calamos Dynamic is expected to generate 10.1 times less return on investment than Mfs Mid. In addition to that, Calamos Dynamic is 1.14 times more volatile than Mfs Mid Cap. It trades about 0.04 of its total potential returns per unit of risk. Mfs Mid Cap is currently generating about 0.43 per unit of volatility. If you would invest  3,211  in Mfs Mid Cap on September 5, 2024 and sell it today you would earn a total of  310.00  from holding Mfs Mid Cap or generate 9.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Calamos Dynamic Convertible  vs.  Mfs Mid Cap

Calamos Dynamic Conv

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Dynamic Convertible are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound fundamental indicators, Calamos Dynamic is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Mfs Mid Cap

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Mid Cap are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Mfs Mid showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calamos Dynamic and Mfs Mid

The main advantage of trading using opposite Calamos Dynamic and Mfs Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Mfs Mid 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 Mid will offset losses from the drop in Mfs Mid's long position.

The idea behind Calamos Dynamic Convertible and Mfs Mid Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.