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 Short Term, 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
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mesirow and Old is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Old Westbury Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Short 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 Short 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 Small is expected to generate 13.47 times more return on investment than Old Westbury. However, Mesirow Financial is 13.47 times more volatile than Old Westbury Short Term. It trades about 0.04 of its potential returns per unit of risk. Old Westbury Short Term is currently generating about 0.11 per unit of risk. If you would invest 1,233 in Mesirow Financial Small on November 3, 2024 and sell it today you would earn a total of 69.00 from holding Mesirow Financial Small or generate 5.6% 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. Old Westbury Short Term
Performance |
| Timeline |
| Mesirow Financial Small |
| Old Westbury Short |
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. Ab Bond Inflation | Mesirow Financial vs. Ab Global Bond | Mesirow Financial vs. Doubleline Total Return | Mesirow Financial vs. Barings High Yield |
| Old Westbury vs. Versatile Bond Portfolio | Old Westbury vs. Siit High Yield | Old Westbury vs. Gmo Emerging Ntry | Old Westbury 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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