Correlation Between Mesirow Financial and Putnam Panagora
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and Putnam Panagora 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 Putnam Panagora 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 Putnam Panagora Risk, you can compare the effects of market volatilities on Mesirow Financial and Putnam Panagora 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 Putnam Panagora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and Putnam Panagora.
Diversification Opportunities for Mesirow Financial and Putnam Panagora
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mesirow and Putnam is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial High and Putnam Panagora Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Panagora Risk 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 Putnam Panagora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Panagora Risk has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Putnam Panagora go up and down completely randomly.
Pair Corralation between Mesirow Financial and Putnam Panagora
If you would invest 823.00 in Mesirow Financial High on September 2, 2024 and sell it today you would earn a total of 33.00 from holding Mesirow Financial High or generate 4.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Mesirow Financial High vs. Putnam Panagora Risk
Performance |
| Timeline |
| Mesirow Financial High |
| Putnam Panagora Risk |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mesirow Financial and Putnam Panagora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and Putnam Panagora
The main advantage of trading using opposite Mesirow Financial and Putnam Panagora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, Putnam Panagora 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 Putnam Panagora will offset losses from the drop in Putnam Panagora's long position.| Mesirow Financial vs. Mesirow Financial Small | Mesirow Financial vs. Mesirow Financial Small | Mesirow Financial vs. Mesirow Enhanced Core |
| Putnam Panagora vs. Columbia Vertible Securities | Putnam Panagora vs. Advent Claymore Convertible | Putnam Panagora vs. Lord Abbett Convertible | Putnam Panagora vs. Absolute Convertible Arbitrage |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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