Correlation Between Mesirow Financial and Tiaa-cref Inflation

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

Diversification Opportunities for Mesirow Financial and Tiaa-cref Inflation

-0.08

Correlation Coefficient

Mesirow Financial  Tiaa-cref Inflation

Good diversification

The 3 months correlation between Mesirow and Tiaa-cref is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Tiaa Cref Inflation Link in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Inflation 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 Tiaa-cref Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Inflation has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Tiaa-cref Inflation go up and down completely randomly.

Pair Corralation between Mesirow Financial and Tiaa-cref Inflation

Assuming the 90 days horizon Mesirow Financial Small is expected to under-perform the Tiaa-cref Inflation. In addition to that, Mesirow Financial is 5.25 times more volatile than Tiaa Cref Inflation Link. It trades about -0.3 of its total potential returns per unit of risk. Tiaa Cref Inflation Link is currently generating about 0.43 per unit of volatility. If you would invest  1,061  in Tiaa Cref Inflation Link on December 5, 2024 and sell it today you would earn a total of  18.00  from holding Tiaa Cref Inflation Link or generate 1.7% return on investment over 90 days.

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

Mesirow Financial Small  vs.  Tiaa Cref Inflation Link

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 weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Tiaa Cref Inflation

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Inflation Link are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Tiaa-cref Inflation 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 Tiaa-cref Inflation

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

The idea behind Mesirow Financial Small and Tiaa Cref Inflation Link 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.