Correlation Between Mesirow Financial and Oppenheimer Global
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and Oppenheimer 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 Oppenheimer 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 Oppenheimer Global Multi Asset, you can compare the effects of market volatilities on Mesirow Financial and Oppenheimer 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 Oppenheimer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and Oppenheimer Global.
Diversification Opportunities for Mesirow Financial and Oppenheimer Global
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mesirow and Oppenheimer is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Oppenheimer Global Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Global 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 Oppenheimer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Global has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Oppenheimer Global go up and down completely randomly.
Pair Corralation between Mesirow Financial and Oppenheimer Global
Assuming the 90 days horizon Mesirow Financial Small is expected to generate 1.74 times more return on investment than Oppenheimer Global. However, Mesirow Financial is 1.74 times more volatile than Oppenheimer Global Multi Asset. It trades about 0.25 of its potential returns per unit of risk. Oppenheimer Global Multi Asset is currently generating about -0.03 per unit of risk. If you would invest 1,351 in Mesirow Financial Small on September 1, 2024 and sell it today you would earn a total of 92.00 from holding Mesirow Financial Small or generate 6.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mesirow Financial Small vs. Oppenheimer Global Multi Asset
Performance |
| Timeline |
| Mesirow Financial Small |
| Oppenheimer Global |
Mesirow Financial and Oppenheimer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and Oppenheimer Global
The main advantage of trading using opposite Mesirow Financial and Oppenheimer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, Oppenheimer 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 Oppenheimer Global will offset losses from the drop in Oppenheimer 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 |
| Oppenheimer Global vs. 1919 Financial Services | Oppenheimer Global vs. Mesirow Financial Small | Oppenheimer Global vs. Blackrock Financial Institutions | Oppenheimer Global vs. Goldman Sachs 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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