Correlation Between Barings Active and Mirova Global
Can any of the company-specific risk be diversified away by investing in both Barings Active 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 Barings Active and Mirova Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Mirova Global Green, you can compare the effects of market volatilities on Barings Active 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 Barings Active with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Mirova Global.
Diversification Opportunities for Barings Active and Mirova Global
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Mirova is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short 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 Barings Active 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 Barings Active Short 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 Barings Active i.e., Barings Active and Mirova Global go up and down completely randomly.
Pair Corralation between Barings Active and Mirova Global
Assuming the 90 days horizon Barings Active Short is expected to generate 0.4 times more return on investment than Mirova Global. However, Barings Active Short is 2.47 times less risky than Mirova Global. It trades about 0.17 of its potential returns per unit of risk. Mirova Global Green is currently generating about 0.02 per unit of risk. If you would invest 810.00 in Barings Active Short on August 28, 2024 and sell it today you would earn a total of 112.00 from holding Barings Active Short or generate 13.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Mirova Global Green
Performance |
| Timeline |
| Barings Active Short |
| Mirova Global Green |
Barings Active and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Mirova Global
The main advantage of trading using opposite Barings Active and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active 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.| Barings Active vs. Versatile Bond Portfolio | Barings Active vs. Nuveen Minnesota Municipal | Barings Active vs. Ishares Municipal Bond | Barings Active vs. Multisector Bond Sma |
| Mirova Global vs. VanEck Green Bond | Mirova Global vs. Calvert Green Bond | Mirova Global vs. Pimco Real Return | Mirova Global vs. Tiaa Cref Social Choice |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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