Correlation Between Mesirow Financial and Investec Emerging

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

Diversification Opportunities for Mesirow Financial and Investec Emerging

0.96

Correlation Coefficient

Mesirow Financial  Investec Emerging

Almost no diversification

The 3 months correlation between Mesirow and Investec is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Investec Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investec Emerging Markets 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 Investec Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investec Emerging Markets has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Investec Emerging go up and down completely randomly.

Pair Corralation between Mesirow Financial and Investec Emerging

Assuming the 90 days horizon Mesirow Financial is expected to generate 1.34 times less return on investment than Investec Emerging. In addition to that, Mesirow Financial is 1.43 times more volatile than Investec Emerging Markets. It trades about 0.14 of its total potential returns per unit of risk. Investec Emerging Markets is currently generating about 0.26 per unit of volatility. If you would invest  1,140  in Investec Emerging Markets on May 2, 2025 and sell it today you would earn a total of  132.00  from holding Investec Emerging Markets or generate 11.58% 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.  Investec Emerging Markets

Mesirow Financial Small

Risk-Adjusted Performance

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 August 2025.

Investec Emerging Markets

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Investec Emerging Markets are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Investec Emerging may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Mesirow Financial and Investec Emerging

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

The idea behind Mesirow Financial Small and Investec Emerging Markets 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.