Correlation Between International Stock and Mirova Global
Can any of the company-specific risk be diversified away by investing in both International Stock 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 International Stock and Mirova Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Stock Fund and Mirova Global Green, you can compare the effects of market volatilities on International Stock 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 International Stock with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Stock and Mirova Global.
Diversification Opportunities for International Stock and Mirova Global
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between International and Mirova is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding International Stock 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 International Stock 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 International Stock 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 International Stock i.e., International Stock and Mirova Global go up and down completely randomly.
Pair Corralation between International Stock and Mirova Global
Assuming the 90 days horizon International Stock Fund is expected to generate 2.18 times more return on investment than Mirova Global. However, International Stock is 2.18 times more volatile than Mirova Global Green. It trades about 0.04 of its potential returns per unit of risk. Mirova Global Green is currently generating about 0.03 per unit of risk. If you would invest 2,068 in International Stock Fund on September 4, 2024 and sell it today you would earn a total of 339.00 from holding International Stock Fund or generate 16.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
International Stock Fund vs. Mirova Global Green
Performance |
| Timeline |
| International Stock |
| Mirova Global Green |
International Stock and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Stock and Mirova Global
The main advantage of trading using opposite International Stock and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Stock 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.| International Stock vs. Dreyfus High Yield | International Stock vs. Dreyfusthe Boston Pany | International Stock vs. Dreyfus International Bond | International Stock vs. Dreyfus International Bond |
| Mirova Global vs. Hood River New | Mirova Global vs. T Rowe Price | Mirova Global vs. T Rowe Price | 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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