Correlation Between Gabelli Convertible and Mesirow Financial

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Can any of the company-specific risk be diversified away by investing in both Gabelli Convertible 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 Convertible and Mesirow Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Convertible And and Mesirow Financial Small, you can compare the effects of market volatilities on Gabelli Convertible 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 Convertible with a short position of Mesirow Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Convertible and Mesirow Financial.

Diversification Opportunities for Gabelli Convertible and Mesirow Financial

GabelliMesirowDiversified AwayGabelliMesirowDiversified Away100%
0.27
  Correlation Coefficient

Modest diversification

The 3 months correlation between Gabelli and Mesirow is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And 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 Convertible 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 Gabelli Convertible And 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 Convertible i.e., Gabelli Convertible and Mesirow Financial go up and down completely randomly.

Pair Corralation between Gabelli Convertible and Mesirow Financial

Considering the 90-day investment horizon Gabelli Convertible And is expected to generate 0.67 times more return on investment than Mesirow Financial. However, Gabelli Convertible And is 1.49 times less risky than Mesirow Financial. It trades about 0.08 of its potential returns per unit of risk. Mesirow Financial Small is currently generating about -0.24 per unit of risk. If you would invest  391.00  in Gabelli Convertible And on November 25, 2024 and sell it today you would earn a total of  4.00  from holding Gabelli Convertible And or generate 1.02% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Gabelli Convertible And  vs.  Mesirow Financial Small

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-505
JavaScript chart by amCharts 3.21.15GCV MSVIX
       Timeline  
Gabelli Convertible And 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Convertible And are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly stable fundamental indicators, Gabelli Convertible is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb3.753.83.853.93.9544.05
Mesirow Financial Small 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Mesirow Financial Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb12.51313.51414.5

Gabelli Convertible and Mesirow Financial Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.67-2.75-1.83-0.910.00.971.932.93.86 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15GCV MSVIX
       Returns  

Pair Trading with Gabelli Convertible and Mesirow Financial

The main advantage of trading using opposite Gabelli Convertible and Mesirow Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Convertible 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.
The idea behind Gabelli Convertible And and Mesirow Financial Small 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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