Correlation Between Mesirow Financial and Ab Impact
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and Ab Impact 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 Ab Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mesirow Financial Small and Ab Impact Municipal, you can compare the effects of market volatilities on Mesirow Financial and Ab Impact 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 Ab Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and Ab Impact.
Diversification Opportunities for Mesirow Financial and Ab Impact
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mesirow and ABIMX is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Ab Impact Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Impact Municipal 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 Small are associated (or correlated) with Ab Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Impact Municipal has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Ab Impact go up and down completely randomly.
Pair Corralation between Mesirow Financial and Ab Impact
Assuming the 90 days horizon Mesirow Financial Small is expected to generate 3.49 times more return on investment than Ab Impact. However, Mesirow Financial is 3.49 times more volatile than Ab Impact Municipal. It trades about 0.19 of its potential returns per unit of risk. Ab Impact Municipal is currently generating about 0.22 per unit of risk. If you would invest 1,364 in Mesirow Financial Small on August 30, 2024 and sell it today you would earn a total of 78.00 from holding Mesirow Financial Small or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesirow Financial Small vs. Ab Impact Municipal
Performance |
| Timeline |
| Mesirow Financial Small |
| Ab Impact Municipal |
Mesirow Financial and Ab Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and Ab Impact
The main advantage of trading using opposite Mesirow Financial and Ab Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, Ab Impact 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 Ab Impact will offset losses from the drop in Ab Impact's long position.| Mesirow Financial vs. Mesirow Financial Small | Mesirow Financial vs. Mesirow Enhanced Core | Mesirow Financial vs. Mesirow Financial High | Mesirow Financial vs. Mesirow Financial High |
| Ab Impact vs. Ab Global E | Ab Impact vs. Ab Global E | Ab Impact vs. Ab Global E | Ab Impact vs. Ab Minnesota Portfolio |
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.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |