Correlation Between Global Diversified and Mercer Core

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

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

Diversification Opportunities for Global Diversified and Mercer Core

0.0

Correlation Coefficient

Global Diversified  Mercer Core

Pay attention - limited upside

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

Pair Corralation between Global Diversified and Mercer Core

If you would invest (100.00) in Mercer Core Fixed on September 16, 2025 and sell it today you would earn a total of  100.00  from holding Mercer Core Fixed or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Global Diversified Income  vs.  Mercer Core Fixed

Global Diversified Income

Risk-Adjusted Performance

Weakest

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

Mercer Core Fixed

Risk-Adjusted Performance

Weakest

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

Pair Trading with Global Diversified and Mercer Core

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

The idea behind Global Diversified Income and Mercer Core Fixed 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.