Correlation Between Mesirow Financial and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and Eaton Vance 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 Eaton Vance 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 Eaton Vance Atlanta, you can compare the effects of market volatilities on Mesirow Financial and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and Eaton Vance.
Diversification Opportunities for Mesirow Financial and Eaton Vance
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mesirow and Eaton is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Eaton Vance Atlanta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Atlanta 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Atlanta has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Eaton Vance go up and down completely randomly.
Pair Corralation between Mesirow Financial and Eaton Vance
Assuming the 90 days horizon Mesirow Financial Small is expected to generate 1.31 times more return on investment than Eaton Vance. However, Mesirow Financial is 1.31 times more volatile than Eaton Vance Atlanta. It trades about 0.21 of its potential returns per unit of risk. Eaton Vance Atlanta is currently generating about 0.26 per unit of risk. If you would invest 1,364 in Mesirow Financial Small on September 4, 2024 and sell it today you would earn a total of 77.00 from holding Mesirow Financial Small or generate 5.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesirow Financial Small vs. Eaton Vance Atlanta
Performance |
| Timeline |
| Mesirow Financial Small |
| Eaton Vance Atlanta |
Mesirow Financial and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and Eaton Vance
The main advantage of trading using opposite Mesirow Financial and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Mesirow Financial vs. Ab Global Risk | Mesirow Financial vs. Guggenheim High Yield | Mesirow Financial vs. Siit High Yield | Mesirow Financial vs. Pioneer High Yield |
| Eaton Vance vs. Eaton Vance Msschsts | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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