Correlation Between Mesirow Financial and Blue Chip

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

Diversification Opportunities for Mesirow Financial and Blue Chip

0.0

Correlation Coefficient

Mesirow Financial  Blue Chip

Pay attention - limited upside

The 3 months correlation between Mesirow and Blue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Blue Chip Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Chip Growth 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 Blue Chip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Chip Growth has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Blue Chip go up and down completely randomly.

Pair Corralation between Mesirow Financial and Blue Chip

If you would invest  1,308  in Mesirow Financial Small on September 12, 2024 and sell it today you would earn a total of  115.00  from holding Mesirow Financial Small or generate 8.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Mesirow Financial Small  vs.  Blue Chip Growth

Mesirow Financial Small

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mesirow Financial Small are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Mesirow Financial may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Blue Chip Growth

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Blue Chip Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Blue Chip is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mesirow Financial and Blue Chip

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

The idea behind Mesirow Financial Small and Blue Chip Growth 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.