Correlation Between Mesirow Financial and Managed Account
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and Managed Account 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 Managed Account 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 Managed Account Series, you can compare the effects of market volatilities on Mesirow Financial and Managed Account 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 Managed Account. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and Managed Account.
Diversification Opportunities for Mesirow Financial and Managed Account
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mesirow and Managed is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial High and Managed Account Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Managed Account Series 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 Managed Account. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Managed Account Series has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Managed Account go up and down completely randomly.
Pair Corralation between Mesirow Financial and Managed Account
Assuming the 90 days horizon Mesirow Financial High is expected to generate 0.61 times more return on investment than Managed Account. However, Mesirow Financial High is 1.64 times less risky than Managed Account. It trades about 0.27 of its potential returns per unit of risk. Managed Account Series is currently generating about 0.12 per unit of risk. If you would invest 765.00 in Mesirow Financial High on September 2, 2024 and sell it today you would earn a total of 91.00 from holding Mesirow Financial High or generate 11.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesirow Financial High vs. Managed Account Series
Performance |
| Timeline |
| Mesirow Financial High |
| Managed Account Series |
Mesirow Financial and Managed Account Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and Managed Account
The main advantage of trading using opposite Mesirow Financial and Managed Account positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, Managed Account 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 Managed Account will offset losses from the drop in Managed Account's long position.| Mesirow Financial vs. Mesirow Financial Small | Mesirow Financial vs. Mesirow Financial Small | Mesirow Financial vs. Mesirow Enhanced Core |
| Managed Account vs. Legg Mason Partners | Managed Account vs. Mesirow Financial High | Managed Account vs. Siit High Yield | Managed Account vs. Blackrock High Yield |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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