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 Large, 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
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mesirow and Old is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Old Westbury Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Large 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 Large 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 1.56 times more return on investment than Old Westbury. However, Mesirow Financial is 1.56 times more volatile than Old Westbury Large. It trades about 0.34 of its potential returns per unit of risk. Old Westbury Large is currently generating about 0.33 per unit of risk. If you would invest 1,203 in Mesirow Financial Small on April 14, 2025 and sell it today you would earn a total of 68.00 from holding Mesirow Financial Small or generate 5.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesirow Financial Small vs. Old Westbury Large
Performance |
| Timeline |
| Mesirow Financial Small |
| Old Westbury Large |
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. Versatile Bond Portfolio | Mesirow Financial vs. Siit High Yield | Mesirow Financial vs. Leader Short Term Bond | Mesirow Financial vs. Pace Strategic Fixed |
| Old Westbury vs. American Funds New | Old Westbury vs. American Funds New | Old Westbury vs. New Perspective Fund | Old Westbury vs. New Perspective Fund |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |