Correlation Between Mirova Global and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Mirova Global and Mainstay Mackay 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 Mirova Global and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirova Global Green and Mainstay Mackay Short, you can compare the effects of market volatilities on Mirova Global and Mainstay Mackay 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 Mirova Global with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Mainstay Mackay.
Diversification Opportunities for Mirova Global and Mainstay Mackay
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mirova and Mainstay is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Mainstay Mackay Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Short and Mirova 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 Mirova Global Green are associated (or correlated) with Mainstay Mackay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mackay Short has no effect on the direction of Mirova Global i.e., Mirova Global and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Mirova Global and Mainstay Mackay
Assuming the 90 days horizon Mirova Global Green is expected to generate 2.74 times more return on investment than Mainstay Mackay. However, Mirova Global is 2.74 times more volatile than Mainstay Mackay Short. It trades about 0.13 of its potential returns per unit of risk. Mainstay Mackay Short is currently generating about 0.19 per unit of risk. If you would invest 799.00 in Mirova Global Green on September 1, 2024 and sell it today you would earn a total of 85.00 from holding Mirova Global Green or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirova Global Green vs. Mainstay Mackay Short
Performance |
| Timeline |
| Mirova Global Green |
| Mainstay Mackay Short |
Mirova Global and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Mainstay Mackay
The main advantage of trading using opposite Mirova Global and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, Mainstay Mackay 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 Mainstay Mackay will offset losses from the drop in Mainstay Mackay's long position.| Mirova Global vs. Calvert Green Bond | Mirova Global vs. VanEck Green Bond | Mirova Global vs. Tiaa Cref Social Choice |
| Mainstay Mackay vs. Mainstay High Yield | Mainstay Mackay vs. Mainstay Tax Free | Mainstay Mackay vs. Mainstay Income Builder | Mainstay Mackay vs. Mainstay Large Cap |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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