Correlation Between Mesirow Financial and Ubs Us

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

Diversification Opportunities for Mesirow Financial and Ubs Us

0.34

Correlation Coefficient

Mesirow Financial  Ubs Us

Weak diversification

The 3 months correlation between Mesirow and Ubs is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Ubs Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Small Cap 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 Ubs Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Small Cap has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Ubs Us go up and down completely randomly.

Pair Corralation between Mesirow Financial and Ubs Us

Assuming the 90 days horizon Mesirow Financial is expected to generate 1.24 times less return on investment than Ubs Us. In addition to that, Mesirow Financial is 1.14 times more volatile than Ubs Small Cap. It trades about 0.1 of its total potential returns per unit of risk. Ubs Small Cap is currently generating about 0.14 per unit of volatility. If you would invest  1,927  in Ubs Small Cap on May 20, 2025 and sell it today you would earn a total of  135.00  from holding Ubs Small Cap or generate 7.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	90.32%
Values	Daily Returns

Mesirow Financial Small  vs.  Ubs Small Cap

Mesirow Financial Small

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Mesirow Financial Small are ranked lower than 7 (%) 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 September 2025.

Ubs Small Cap

Risk-Adjusted Performance

Fair

Over the last 90 days Ubs Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly weak fundamental indicators, Ubs Us may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Mesirow Financial and Ubs Us

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

The idea behind Mesirow Financial Small and Ubs Small Cap 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.