Correlation Between Mesirow Financial and First Eagle
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and First Eagle 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 First Eagle 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 First Eagle Fund, you can compare the effects of market volatilities on Mesirow Financial and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and First Eagle.
Diversification Opportunities for Mesirow Financial and First Eagle
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mesirow and First is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial High and First Eagle Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Fund 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Fund has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and First Eagle go up and down completely randomly.
Pair Corralation between Mesirow Financial and First Eagle
Assuming the 90 days horizon Mesirow Financial is expected to generate 1.2 times less return on investment than First Eagle. But when comparing it to its historical volatility, Mesirow Financial High is 4.57 times less risky than First Eagle. It trades about 0.21 of its potential returns per unit of risk. First Eagle Fund is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,281 in First Eagle Fund on September 3, 2024 and sell it today you would earn a total of 329.00 from holding First Eagle Fund or generate 25.68% 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. First Eagle Fund
Performance |
| Timeline |
| Mesirow Financial High |
| First Eagle Fund |
Mesirow Financial and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and First Eagle
The main advantage of trading using opposite Mesirow Financial and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Mesirow Financial vs. Kinetics Market Opportunities | Mesirow Financial vs. Calamos Market Neutral | Mesirow Financial vs. Locorr Market Trend | Mesirow Financial vs. Morgan Stanley Emerging |
| First Eagle vs. First American Funds | First Eagle vs. First American Funds | First Eagle vs. First American Funds | First Eagle vs. First American Funds |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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