Correlation Between Mesirow Financial and Eagle Mlp

Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and Eagle Mlp 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 Eagle Mlp 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 Eagle Mlp Strategy, you can compare the effects of market volatilities on Mesirow Financial and Eagle Mlp 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 Eagle Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and Eagle Mlp.

Diversification Opportunities for Mesirow Financial and Eagle Mlp

0.47

Correlation Coefficient

Mesirow Financial  Eagle Mlp

Very weak diversification

The 3 months correlation between Mesirow and Eagle is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Eagle Mlp Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mlp Strategy 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 Eagle Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mlp Strategy has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Eagle Mlp go up and down completely randomly.

Pair Corralation between Mesirow Financial and Eagle Mlp

Assuming the 90 days horizon Mesirow Financial Small is expected to under-perform the Eagle Mlp. In addition to that, Mesirow Financial is 1.53 times more volatile than Eagle Mlp Strategy. It trades about -0.07 of its total potential returns per unit of risk. Eagle Mlp Strategy is currently generating about 0.18 per unit of volatility. If you would invest  930.00  in Eagle Mlp Strategy on September 26, 2024 and sell it today you would earn a total of  121.00  from holding Eagle Mlp Strategy or generate 13.01% 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.  Eagle Mlp Strategy

Mesirow Financial Small

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mesirow Financial Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Eagle Mlp Strategy

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Mlp Strategy are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Eagle Mlp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mesirow Financial and Eagle Mlp

The main advantage of trading using opposite Mesirow Financial and Eagle Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, Eagle Mlp 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 Eagle Mlp will offset losses from the drop in Eagle Mlp's long position.

The idea behind Mesirow Financial Small and Eagle Mlp Strategy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.