Correlation Between Mesirow Financial and Pace High
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and Pace High 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 Pace High 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 Pace High Yield, you can compare the effects of market volatilities on Mesirow Financial and Pace High 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 Pace High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and Pace High.
Diversification Opportunities for Mesirow Financial and Pace High
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mesirow and Pace is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Pace High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace High Yield 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 Pace High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace High Yield has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Pace High go up and down completely randomly.
Pair Corralation between Mesirow Financial and Pace High
Assuming the 90 days horizon Mesirow Financial Small is expected to generate 6.7 times more return on investment than Pace High. However, Mesirow Financial is 6.7 times more volatile than Pace High Yield. It trades about 0.05 of its potential returns per unit of risk. Pace High Yield is currently generating about 0.13 per unit of risk. If you would invest 1,176 in Mesirow Financial Small on March 30, 2025 and sell it today you would earn a total of 61.00 from holding Mesirow Financial Small or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesirow Financial Small vs. Pace High Yield
Performance |
| Timeline |
| Mesirow Financial Small |
| Pace High Yield |
Mesirow Financial and Pace High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and Pace High
The main advantage of trading using opposite Mesirow Financial and Pace High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, Pace High 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 Pace High will offset losses from the drop in Pace High's long position.| Mesirow Financial vs. Doubleline Global Bond | Mesirow Financial vs. Ms Global Fixed | Mesirow Financial vs. Gamco Global Opportunity | Mesirow Financial vs. Tweedy Browne Global |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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