Correlation Between Mesirow Financial and Delaware National
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and Delaware National 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 Delaware National 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 Delaware National High Yield, you can compare the effects of market volatilities on Mesirow Financial and Delaware National 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 Delaware National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and Delaware National.
Diversification Opportunities for Mesirow Financial and Delaware National
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mesirow and Delaware is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Delaware National High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware National High 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 Delaware National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware National High has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Delaware National go up and down completely randomly.
Pair Corralation between Mesirow Financial and Delaware National
Assuming the 90 days horizon Mesirow Financial is expected to generate 1.14 times less return on investment than Delaware National. In addition to that, Mesirow Financial is 3.36 times more volatile than Delaware National High Yield. It trades about 0.02 of its total potential returns per unit of risk. Delaware National High Yield is currently generating about 0.08 per unit of volatility. If you would invest 902.00 in Delaware National High Yield on November 29, 2024 and sell it today you would earn a total of 128.00 from holding Delaware National High Yield or generate 14.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesirow Financial Small vs. Delaware National High Yield
Performance |
| Timeline |
| Mesirow Financial Small |
| Delaware National High |
Mesirow Financial and Delaware National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and Delaware National
The main advantage of trading using opposite Mesirow Financial and Delaware National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, Delaware National 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 Delaware National will offset losses from the drop in Delaware National's long position.| Mesirow Financial vs. Gabelli Global Financial | Mesirow Financial vs. Icon Financial Fund | Mesirow Financial vs. Blackrock Financial Institutions | Mesirow Financial vs. Financial Industries Fund |
| Delaware National vs. Ultra Short Fixed Income | Delaware National vs. Doubleline Emerging Markets | Delaware National vs. Baird Quality Intermediate | Delaware National vs. Flexible Bond 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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