Correlation Between Elfun Trusts and Mesirow Financial
Can any of the company-specific risk be diversified away by investing in both Elfun Trusts and Mesirow Financial 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 Elfun Trusts and Mesirow Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Trusts Elfun and Mesirow Financial Small, you can compare the effects of market volatilities on Elfun Trusts and Mesirow Financial 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 Elfun Trusts with a short position of Mesirow Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and Mesirow Financial.
Diversification Opportunities for Elfun Trusts and Mesirow Financial
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elfun and MESIROW is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and Mesirow Financial Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesirow Financial Small and Elfun Trusts 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 Elfun Trusts Elfun are associated (or correlated) with Mesirow Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesirow Financial Small has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and Mesirow Financial go up and down completely randomly.
Pair Corralation between Elfun Trusts and Mesirow Financial
Assuming the 90 days horizon Elfun Trusts Elfun is expected to generate 0.77 times more return on investment than Mesirow Financial. However, Elfun Trusts Elfun is 1.3 times less risky than Mesirow Financial. It trades about 0.12 of its potential returns per unit of risk. Mesirow Financial Small is currently generating about 0.04 per unit of risk. If you would invest 6,150 in Elfun Trusts Elfun on September 1, 2024 and sell it today you would earn a total of 3,755 from holding Elfun Trusts Elfun or generate 61.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.78% |
| Values | Daily Returns |
Elfun Trusts Elfun vs. Mesirow Financial Small
Performance |
| Timeline |
| Elfun Trusts Elfun |
| Mesirow Financial Small |
Elfun Trusts and Mesirow Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Trusts and Mesirow Financial
The main advantage of trading using opposite Elfun Trusts and Mesirow Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Trusts position performs unexpectedly, Mesirow Financial 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 Mesirow Financial will offset losses from the drop in Mesirow Financial's long position.| Elfun Trusts vs. State Street Target | Elfun Trusts vs. State Street Target | Elfun Trusts vs. Ssga International Stock | Elfun Trusts vs. State Street Target |
| Mesirow Financial vs. Bbh Partner Fund | Mesirow Financial vs. Semiconductor Ultrasector Profund | Mesirow Financial vs. Small Cap Stock | Mesirow Financial vs. Omni Small Cap Value |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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