Correlation Between Jhancock Global and Mirova Global
Can any of the company-specific risk be diversified away by investing in both Jhancock Global 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 Jhancock Global and Mirova Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Global Equity and Mirova Global Green, you can compare the effects of market volatilities on Jhancock Global 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 Jhancock Global with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Mirova Global.
Diversification Opportunities for Jhancock Global and Mirova Global
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and Mirova is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity 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 Jhancock Global 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 Jhancock Global Equity 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 Jhancock Global i.e., Jhancock Global and Mirova Global go up and down completely randomly.
Pair Corralation between Jhancock Global and Mirova Global
Assuming the 90 days horizon Jhancock Global Equity is expected to under-perform the Mirova Global. In addition to that, Jhancock Global is 2.19 times more volatile than Mirova Global Green. It trades about -0.1 of its total potential returns per unit of risk. Mirova Global Green is currently generating about 0.34 per unit of volatility. If you would invest 879.00 in Mirova Global Green on September 12, 2024 and sell it today you would earn a total of 13.00 from holding Mirova Global Green or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Global Equity vs. Mirova Global Green
Performance |
| Timeline |
| Jhancock Global Equity |
| Mirova Global Green |
Jhancock Global and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and Mirova Global
The main advantage of trading using opposite Jhancock Global and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global 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.| Jhancock Global vs. John Hancock Financial | Jhancock Global vs. Blackrock Financial Institutions | Jhancock Global vs. Angel Oak Financial | Jhancock Global vs. Icon Financial Fund |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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