Correlation Between World Energy and Mirova Global
Can any of the company-specific risk be diversified away by investing in both World Energy 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 World Energy and Mirova Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between World Energy Fund and Mirova Global Green, you can compare the effects of market volatilities on World Energy 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 World Energy with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of World Energy and Mirova Global.
Diversification Opportunities for World Energy and Mirova Global
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between World and Mirova is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding World Energy Fund 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 World Energy 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 World Energy Fund 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 World Energy i.e., World Energy and Mirova Global go up and down completely randomly.
Pair Corralation between World Energy and Mirova Global
Assuming the 90 days horizon World Energy is expected to generate 2.65 times less return on investment than Mirova Global. In addition to that, World Energy is 5.69 times more volatile than Mirova Global Green. It trades about 0.02 of its total potential returns per unit of risk. Mirova Global Green is currently generating about 0.38 per unit of volatility. If you would invest 878.00 in Mirova Global Green on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Mirova Global Green or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
World Energy Fund vs. Mirova Global Green
Performance |
| Timeline |
| World Energy |
| Mirova Global Green |
World Energy and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with World Energy and Mirova Global
The main advantage of trading using opposite World Energy and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if World Energy 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.| World Energy vs. Hennessy Bp Energy | World Energy vs. Franklin Natural Resources | World Energy vs. Icon Natural Resources | World Energy vs. Gamco Natural Resources |
| Mirova Global vs. Artisan Small Cap | Mirova Global vs. Champlain Mid Cap | Mirova Global vs. Praxis Growth Index | Mirova Global vs. T Rowe Price |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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