Correlation Between Mesirow Financial and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and Angel Oak 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 Mesirow Financial and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mesirow Financial High and Angel Oak Financial, you can compare the effects of market volatilities on Mesirow Financial and Angel Oak 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 Mesirow Financial with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and Angel Oak.
Diversification Opportunities for Mesirow Financial and Angel Oak
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mesirow and Angel is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial High and Angel Oak Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Financial and Mesirow Financial 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 Mesirow Financial High are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Financial has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Angel Oak go up and down completely randomly.
Pair Corralation between Mesirow Financial and Angel Oak
Assuming the 90 days horizon Mesirow Financial High is expected to generate 0.5 times more return on investment than Angel Oak. However, Mesirow Financial High is 1.99 times less risky than Angel Oak. It trades about 0.25 of its potential returns per unit of risk. Angel Oak Financial is currently generating about 0.12 per unit of risk. If you would invest 854.00 in Mesirow Financial High on September 13, 2024 and sell it today you would earn a total of 5.00 from holding Mesirow Financial High or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesirow Financial High vs. Angel Oak Financial
Performance |
| Timeline |
| Mesirow Financial High |
| Angel Oak Financial |
Mesirow Financial and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and Angel Oak
The main advantage of trading using opposite Mesirow Financial and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Mesirow Financial vs. Mesirow Financial Small | Mesirow Financial vs. Mesirow Financial Small | Mesirow Financial vs. Mesirow Enhanced Core | Mesirow Financial vs. Mesirow Financial High |
| Angel Oak vs. Shelton Emerging Markets | Angel Oak vs. Pace International Emerging | Angel Oak vs. Rbc Emerging Markets | Angel Oak vs. Vy Jpmorgan Emerging |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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