Correlation Between Mfs Lifetime and Calamos Dynamic

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

By analyzing existing cross correlation between Mfs Lifetime 2060 and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Mfs Lifetime and Calamos Dynamic 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 Lifetime with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Calamos Dynamic.

Diversification Opportunities for Mfs Lifetime and Calamos Dynamic

-0.24

Correlation Coefficient

Mfs Lifetime  Calamos Dynamic

Very good diversification

The 3 months correlation between Mfs and Calamos is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2060 and Calamos Dynamic Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dynamic Conv and Mfs Lifetime 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 Lifetime 2060 are associated (or correlated) with Calamos Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dynamic Conv has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Calamos Dynamic go up and down completely randomly.

Pair Corralation between Mfs Lifetime and Calamos Dynamic

Assuming the 90 days horizon Mfs Lifetime 2060 is expected to generate 0.74 times more return on investment than Calamos Dynamic. However, Mfs Lifetime 2060 is 1.35 times less risky than Calamos Dynamic. It trades about 0.16 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.14 per unit of risk. If you would invest  1,682  in Mfs Lifetime 2060 on May 13, 2025 and sell it today you would earn a total of  92.00  from holding Mfs Lifetime 2060 or generate 5.47% return on investment over 90 days.

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

Mfs Lifetime 2060  vs.  Calamos Dynamic Convertible

Mfs Lifetime 2060

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Lifetime 2060 are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mfs Lifetime is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Calamos Dynamic Conv

Risk-Adjusted Performance

Weakest

Over the last 90 days Calamos Dynamic Convertible has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound fundamental indicators, Calamos Dynamic is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Mfs Lifetime and Calamos Dynamic

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

The idea behind Mfs Lifetime 2060 and Calamos Dynamic Convertible 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.