Correlation Between Cullen Emerging and Mirova Global
Can any of the company-specific risk be diversified away by investing in both Cullen Emerging 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 Cullen Emerging and Mirova Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullen Emerging Markets and Mirova Global Green, you can compare the effects of market volatilities on Cullen Emerging 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 Cullen Emerging with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen Emerging and Mirova Global.
Diversification Opportunities for Cullen Emerging and Mirova Global
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cullen and Mirova is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Cullen Emerging Markets 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 Cullen Emerging 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 Cullen Emerging Markets 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 Cullen Emerging i.e., Cullen Emerging and Mirova Global go up and down completely randomly.
Pair Corralation between Cullen Emerging and Mirova Global
Assuming the 90 days horizon Cullen Emerging Markets is expected to under-perform the Mirova Global. In addition to that, Cullen Emerging is 2.86 times more volatile than Mirova Global Green. It trades about -0.15 of its total potential returns per unit of risk. Mirova Global Green is currently generating about 0.48 per unit of volatility. If you would invest 873.00 in Mirova Global Green on September 2, 2024 and sell it today you would earn a total of 18.00 from holding Mirova Global Green or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cullen Emerging Markets vs. Mirova Global Green
Performance |
| Timeline |
| Cullen Emerging Markets |
| Mirova Global Green |
Cullen Emerging and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullen Emerging and Mirova Global
The main advantage of trading using opposite Cullen Emerging and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen Emerging 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.| Cullen Emerging vs. Vanguard Developed Markets | Cullen Emerging vs. Transamerica Emerging Markets | Cullen Emerging vs. Western Asset Diversified | Cullen Emerging vs. Shelton Emerging Markets |
| Mirova Global vs. Fidelity Advisor Gold | Mirova Global vs. Goldman Sachs Esg | Mirova Global vs. Gabelli Gold Fund | Mirova Global vs. Global Gold Fund |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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