Correlation Between Ab Impact and Mirova Global
Can any of the company-specific risk be diversified away by investing in both Ab Impact and Mirova Global 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 Ab Impact and Mirova Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Impact Municipal and Mirova Global Green, you can compare the effects of market volatilities on Ab Impact and Mirova Global 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 Ab Impact with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Mirova Global.
Diversification Opportunities for Ab Impact and Mirova Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ABIMX and Mirova is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and Mirova Global Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirova Global Green and Ab Impact 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 Ab Impact Municipal are associated (or correlated) with Mirova Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirova Global Green has no effect on the direction of Ab Impact i.e., Ab Impact and Mirova Global go up and down completely randomly.
Pair Corralation between Ab Impact and Mirova Global
Assuming the 90 days horizon Ab Impact Municipal is expected to generate 1.98 times more return on investment than Mirova Global. However, Ab Impact is 1.98 times more volatile than Mirova Global Green. It trades about 0.15 of its potential returns per unit of risk. Mirova Global Green is currently generating about 0.14 per unit of risk. If you would invest 981.00 in Ab Impact Municipal on August 29, 2024 and sell it today you would earn a total of 13.00 from holding Ab Impact Municipal or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ab Impact Municipal vs. Mirova Global Green
Performance |
| Timeline |
| Ab Impact Municipal |
| Mirova Global Green |
Ab Impact and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and Mirova Global
The main advantage of trading using opposite Ab Impact and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, Mirova Global 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 Mirova Global will offset losses from the drop in Mirova Global's long position.| Ab Impact vs. HUMANA INC | Ab Impact vs. Aquagold International | Ab Impact vs. Barloworld Ltd ADR | Ab Impact vs. Morningstar Unconstrained Allocation |
| Mirova Global vs. Vanguard Total International | Mirova Global vs. Dfa Five Year Global | Mirova Global vs. HUMANA INC | Mirova Global vs. Aquagold International |
Check out your portfolio center.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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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