Correlation Between Calamos Laddered and MFS Active

Can any of the company-specific risk be diversified away by investing in both Calamos Laddered and MFS Active 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 Laddered and MFS Active into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Calamos Laddered SP and MFS Active Value, you can compare the effects of market volatilities on Calamos Laddered and MFS Active 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 Laddered with a short position of MFS Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Laddered and MFS Active.

Diversification Opportunities for Calamos Laddered and MFS Active

0.53

Correlation Coefficient

Calamos Laddered  MFS Active

Very weak diversification

The 3 months correlation between Calamos and MFS is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Laddered SP and MFS Active Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Active Value and Calamos Laddered 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 Laddered SP are associated (or correlated) with MFS Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Active Value has no effect on the direction of Calamos Laddered i.e., Calamos Laddered and MFS Active go up and down completely randomly.

Pair Corralation between Calamos Laddered and MFS Active

Given the investment horizon of 90 days Calamos Laddered is expected to generate 1.68 times less return on investment than MFS Active. But when comparing it to its historical volatility, Calamos Laddered SP is 3.41 times less risky than MFS Active. It trades about 0.32 of its potential returns per unit of risk. MFS Active Value is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  2,398  in MFS Active Value on April 30, 2025 and sell it today you would earn a total of  155.00  from holding MFS Active Value or generate 6.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Calamos Laddered SP  vs.  MFS Active Value

Calamos Laddered

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Laddered SP are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Calamos Laddered is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

MFS Active Value

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MFS Active Value are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, MFS Active may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Calamos Laddered and MFS Active

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

The idea behind Calamos Laddered SP and MFS Active Value 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.