Correlation Between Mesirow Financial and Calamos Evolving

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

Diversification Opportunities for Mesirow Financial and Calamos Evolving

-0.06

Correlation Coefficient

Mesirow Financial  Calamos Evolving

Good diversification

The 3 months correlation between Mesirow and Calamos is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Calamos Evolving World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Evolving World 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 Calamos Evolving. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Evolving World has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Calamos Evolving go up and down completely randomly.

Pair Corralation between Mesirow Financial and Calamos Evolving

Assuming the 90 days horizon Mesirow Financial Small is expected to under-perform the Calamos Evolving. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mesirow Financial Small is 1.14 times less risky than Calamos Evolving. The mutual fund trades about -0.07 of its potential returns per unit of risk. The Calamos Evolving World is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  1,745  in Calamos Evolving World on December 30, 2024 and sell it today you would lose (40.00) from holding Calamos Evolving World or give up 2.29% of portfolio value over 90 days.

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

Mesirow Financial Small  vs.  Calamos Evolving World

Mesirow Financial Small

Risk-Adjusted Performance

Very Weak

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

Calamos Evolving World

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Mesirow Financial and Calamos Evolving

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

The idea behind Mesirow Financial Small and Calamos Evolving World 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.