Correlation Between Mercer Non and Mercer Funds

Can any of the company-specific risk be diversified away by investing in both Mercer Non and Mercer Funds 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 Mercer Non and Mercer Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mercer Non Core and Mercer Funds , you can compare the effects of market volatilities on Mercer Non and Mercer Funds 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 Mercer Non with a short position of Mercer Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercer Non and Mercer Funds.

Diversification Opportunities for Mercer Non and Mercer Funds

0.16

Correlation Coefficient

Mercer Non  Mercer Funds

Average diversification

The 3 months correlation between Mercer and Mercer is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Mercer Non Core and Mercer Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercer Funds and Mercer Non 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 Mercer Non Core are associated (or correlated) with Mercer Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercer Funds has no effect on the direction of Mercer Non i.e., Mercer Non and Mercer Funds go up and down completely randomly.

Pair Corralation between Mercer Non and Mercer Funds

Assuming the 90 days horizon Mercer Non Core is expected to generate 0.72 times more return on investment than Mercer Funds. However, Mercer Non Core is 1.4 times less risky than Mercer Funds. It trades about 0.08 of its potential returns per unit of risk. Mercer Funds is currently generating about 0.02 per unit of risk. If you would invest  1,304  in Mercer Non Core on September 5, 2025 and sell it today you would earn a total of  44.00  from holding Mercer Non Core or generate 3.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Mercer Non Core  vs.  Mercer Funds

Mercer Non Core

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Mercer Non Core are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mercer Non is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mercer Funds

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mercer Funds are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mercer Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mercer Non and Mercer Funds

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

The idea behind Mercer Non Core and Mercer Funds 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.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.