Correlation Between Mesirow Financial and Voya Global
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and Voya Global 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 Global 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 Global Bond, you can compare the effects of market volatilities on Mesirow Financial and Voya Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and Voya Global.
Diversification Opportunities for Mesirow Financial and Voya Global
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mesirow and Voya is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Voya Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Bond has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Voya Global go up and down completely randomly.
Pair Corralation between Mesirow Financial and Voya Global
Assuming the 90 days horizon Mesirow Financial Small is expected to generate 2.76 times more return on investment than Voya Global. However, Mesirow Financial is 2.76 times more volatile than Voya Global Bond. It trades about 0.19 of its potential returns per unit of risk. Voya Global Bond is currently generating about 0.0 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesirow Financial Small vs. Voya Global Bond
Performance |
| Timeline |
| Mesirow Financial Small |
| Voya Global Bond |
Mesirow Financial and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and Voya Global
The main advantage of trading using opposite Mesirow Financial and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, Voya Global 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 Global will offset losses from the drop in Voya Global'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 |
| Voya Global vs. Mesirow Financial Small | Voya Global vs. Prudential Jennison Financial | Voya Global vs. Financials Ultrasector Profund | Voya Global vs. Angel Oak 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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