Correlation Between Mesirow Financial and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and Old Westbury 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 Old Westbury 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 Old Westbury Municipal, you can compare the effects of market volatilities on Mesirow Financial and Old Westbury 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 Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and Old Westbury.
Diversification Opportunities for Mesirow Financial and Old Westbury
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mesirow and Old is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Old Westbury Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Municipal 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 Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Municipal has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Old Westbury go up and down completely randomly.
Pair Corralation between Mesirow Financial and Old Westbury
Assuming the 90 days horizon Mesirow Financial is expected to generate 3.91 times less return on investment than Old Westbury. In addition to that, Mesirow Financial is 9.54 times more volatile than Old Westbury Municipal. It trades about 0.02 of its total potential returns per unit of risk. Old Westbury Municipal is currently generating about 0.58 per unit of volatility. If you would invest 1,149 in Old Westbury Municipal on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Old Westbury Municipal or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesirow Financial Small vs. Old Westbury Municipal
Performance |
| Timeline |
| Mesirow Financial Small |
| Old Westbury Municipal |
Mesirow Financial and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and Old Westbury
The main advantage of trading using opposite Mesirow Financial and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury'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 |
| Old Westbury vs. Boston Partners Small | Old Westbury vs. Royce Opportunity Fund | Old Westbury vs. Queens Road Small | Old Westbury vs. Lsv Small Cap |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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