Correlation Between Gabelli Utilities and Mesirow Financial
Can any of the company-specific risk be diversified away by investing in both Gabelli Utilities 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 Gabelli Utilities and Mesirow Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Utilities and Mesirow Financial Small, you can compare the effects of market volatilities on Gabelli Utilities 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 Gabelli Utilities with a short position of Mesirow Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Utilities and Mesirow Financial.
Diversification Opportunities for Gabelli Utilities and Mesirow Financial
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gabelli and Mesirow is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Utilities 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 Gabelli Utilities 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 The Gabelli Utilities 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 Gabelli Utilities i.e., Gabelli Utilities and Mesirow Financial go up and down completely randomly.
Pair Corralation between Gabelli Utilities and Mesirow Financial
Assuming the 90 days horizon The Gabelli Utilities is expected to under-perform the Mesirow Financial. But the mutual fund apears to be less risky and, when comparing its historical volatility, The Gabelli Utilities is 1.32 times less risky than Mesirow Financial. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Mesirow Financial Small is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,378 in Mesirow Financial Small on September 13, 2024 and sell it today you would earn a total of 55.00 from holding Mesirow Financial Small or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Utilities vs. Mesirow Financial Small
Performance |
| Timeline |
| Gabelli Utilities |
| Mesirow Financial Small |
Gabelli Utilities and Mesirow Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Utilities and Mesirow Financial
The main advantage of trading using opposite Gabelli Utilities and Mesirow Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Utilities 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.| Gabelli Utilities vs. Dominion Energy | Gabelli Utilities vs. Atlantica Sustainable Infrastructure | Gabelli Utilities vs. Consolidated Edison | Gabelli Utilities vs. Eversource Energy |
| Mesirow Financial vs. Old Westbury Large | Mesirow Financial vs. Aqr Large Cap | Mesirow Financial vs. Morningstar Unconstrained Allocation | Mesirow Financial vs. T Rowe Price |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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