Correlation Between Meridian Growth and Mexico Equity

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

By analyzing existing cross correlation between Meridian Growth Fund and Mexico Equity And, you can compare the effects of market volatilities on Meridian Growth and Mexico Equity 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 Meridian Growth with a short position of Mexico Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meridian Growth and Mexico Equity.

Diversification Opportunities for Meridian Growth and Mexico Equity

-0.27

Correlation Coefficient

Meridian Growth  Mexico Equity

Very good diversification

The 3 months correlation between Meridian and Mexico is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Meridian Growth Fund and Mexico Equity And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mexico Equity And and Meridian Growth 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 Meridian Growth Fund are associated (or correlated) with Mexico Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mexico Equity And has no effect on the direction of Meridian Growth i.e., Meridian Growth and Mexico Equity go up and down completely randomly.

Pair Corralation between Meridian Growth and Mexico Equity

Assuming the 90 days horizon Meridian Growth Fund is expected to under-perform the Mexico Equity. But the mutual fund apears to be less risky and, when comparing its historical volatility, Meridian Growth Fund is 1.09 times less risky than Mexico Equity. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Mexico Equity And is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  805.00  in Mexico Equity And on December 29, 2024 and sell it today you would earn a total of  66.00  from holding Mexico Equity And or generate 8.2% return on investment over 90 days.

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

Meridian Growth Fund  vs.  Mexico Equity And

Meridian Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Meridian Growth Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Mexico Equity And

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mexico Equity And are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather fragile basic indicators, Mexico Equity may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Meridian Growth and Mexico Equity

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

The idea behind Meridian Growth Fund and Mexico Equity And 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 Commodity Directory module to find actively traded commodities issued by global exchanges.