Correlation Between Mesirow Financial and American Beacon
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and American Beacon 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 American Beacon 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 American Beacon Glg, you can compare the effects of market volatilities on Mesirow Financial and American Beacon 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 American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and American Beacon.
Diversification Opportunities for Mesirow Financial and American Beacon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mesirow and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and American Beacon Glg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Glg 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 American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Glg has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and American Beacon go up and down completely randomly.
Pair Corralation between Mesirow Financial and American Beacon
If you would invest 1,092 in Mesirow Financial Small on September 13, 2024 and sell it today you would earn a total of 328.00 from holding Mesirow Financial Small or generate 30.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Mesirow Financial Small vs. American Beacon Glg
Performance |
| Timeline |
| Mesirow Financial Small |
| American Beacon Glg |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mesirow Financial and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and American Beacon
The main advantage of trading using opposite Mesirow Financial and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Mesirow Financial vs. Old Westbury Large | Mesirow Financial vs. Aqr Large Cap | Mesirow Financial vs. Morningstar Unconstrained Allocation | Mesirow Financial vs. T Rowe Price |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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