Correlation Between CaliberCos and MFS Intermediate

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

By analyzing existing cross correlation between CaliberCos Class A and MFS Intermediate Income, you can compare the effects of market volatilities on CaliberCos and MFS Intermediate 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 CaliberCos with a short position of MFS Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of CaliberCos and MFS Intermediate.

Diversification Opportunities for CaliberCos and MFS Intermediate

-0.58

Correlation Coefficient

CaliberCos  MFS Intermediate

Excellent diversification

The 3 months correlation between CaliberCos and MFS is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding CaliberCos Class A and MFS Intermediate Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Intermediate Income and CaliberCos 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 CaliberCos Class A are associated (or correlated) with MFS Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Intermediate Income has no effect on the direction of CaliberCos i.e., CaliberCos and MFS Intermediate go up and down completely randomly.

Pair Corralation between CaliberCos and MFS Intermediate

Considering the 90-day investment horizon CaliberCos Class A is expected to under-perform the MFS Intermediate. In addition to that, CaliberCos is 12.72 times more volatile than MFS Intermediate Income. It trades about -0.07 of its total potential returns per unit of risk. MFS Intermediate Income is currently generating about 0.08 per unit of volatility. If you would invest  261.00  in MFS Intermediate Income on May 22, 2025 and sell it today you would earn a total of  8.00  from holding MFS Intermediate Income or generate 3.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CaliberCos Class A  vs.  MFS Intermediate Income

CaliberCos Class A

Risk-Adjusted Performance

Weakest

Over the last 90 days CaliberCos Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

MFS Intermediate Income

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in MFS Intermediate Income are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, MFS Intermediate is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CaliberCos and MFS Intermediate

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

The idea behind CaliberCos Class A and MFS Intermediate Income 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.