Correlation Between Mesirow Financial and Voya Intermediate
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and Voya Intermediate 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 Voya Intermediate 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 Voya Intermediate Bond, you can compare the effects of market volatilities on Mesirow Financial and Voya Intermediate 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 Voya Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and Voya Intermediate.
Diversification Opportunities for Mesirow Financial and Voya Intermediate
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mesirow and Voya is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Voya Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Intermediate Bond 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 Voya Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Intermediate Bond has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Voya Intermediate go up and down completely randomly.
Pair Corralation between Mesirow Financial and Voya Intermediate
Assuming the 90 days horizon Mesirow Financial Small is expected to generate 4.1 times more return on investment than Voya Intermediate. However, Mesirow Financial is 4.1 times more volatile than Voya Intermediate Bond. It trades about 0.22 of its potential returns per unit of risk. Voya Intermediate Bond is currently generating about 0.11 per unit of risk. If you would invest 1,364 in Mesirow Financial Small on September 3, 2024 and sell it today you would earn a total of 80.00 from holding Mesirow Financial Small or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesirow Financial Small vs. Voya Intermediate Bond
Performance |
| Timeline |
| Mesirow Financial Small |
| Voya Intermediate Bond |
Mesirow Financial and Voya Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and Voya Intermediate
The main advantage of trading using opposite Mesirow Financial and Voya Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, Voya Intermediate 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 Voya Intermediate will offset losses from the drop in Voya Intermediate's long position.| Mesirow Financial vs. Vanguard Small Cap Index | Mesirow Financial vs. Vanguard Small Cap Index | Mesirow Financial vs. Vanguard Small Cap Index | Mesirow Financial vs. Vanguard Small Cap Index |
| Voya Intermediate vs. Mesirow Financial Small | Voya Intermediate vs. 1919 Financial Services | Voya Intermediate vs. Vanguard Financials Index | Voya Intermediate vs. Fidelity Advisor Financial |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |