Correlation Between Mesirow Financial and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and Mainstay High 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 Mainstay High 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 Mainstay High Yield, you can compare the effects of market volatilities on Mesirow Financial and Mainstay High 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 Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and Mainstay High.
Diversification Opportunities for Mesirow Financial and Mainstay High
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mesirow and Mainstay is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial High and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield 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 Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Mainstay High go up and down completely randomly.
Pair Corralation between Mesirow Financial and Mainstay High
Assuming the 90 days horizon Mesirow Financial High is expected to generate 0.56 times more return on investment than Mainstay High. However, Mesirow Financial High is 1.79 times less risky than Mainstay High. It trades about 0.24 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.1 per unit of risk. If you would invest 691.00 in Mesirow Financial High on November 8, 2024 and sell it today you would earn a total of 162.00 from holding Mesirow Financial High or generate 23.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesirow Financial High vs. Mainstay High Yield
Performance |
| Timeline |
| Mesirow Financial High |
| Mainstay High Yield |
Mesirow Financial and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and Mainstay High
The main advantage of trading using opposite Mesirow Financial and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, Mainstay High 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 Mainstay High will offset losses from the drop in Mainstay High's long position.| Mesirow Financial vs. Dreyfusstandish Global Fixed | Mesirow Financial vs. T Rowe Price | Mesirow Financial vs. Gmo Emerging Ntry | Mesirow Financial vs. Artisan High Income |
| Mainstay High vs. Mainstay Sp 500 | Mainstay High vs. Mainstay Balanced Fund | Mainstay High vs. Mainstay Balanced Fund | Mainstay High vs. Mainstay Tax Advantaged |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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