Correlation Between Mirova Global and Baron Health
Can any of the company-specific risk be diversified away by investing in both Mirova Global and Baron Health 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 Baron Health 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 Baron Health Care, you can compare the effects of market volatilities on Mirova Global and Baron Health 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 Baron Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Baron Health.
Diversification Opportunities for Mirova Global and Baron Health
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mirova and Baron is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Baron Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Health Care 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 Baron Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Health Care has no effect on the direction of Mirova Global i.e., Mirova Global and Baron Health go up and down completely randomly.
Pair Corralation between Mirova Global and Baron Health
Assuming the 90 days horizon Mirova Global is expected to generate 1.21 times less return on investment than Baron Health. But when comparing it to its historical volatility, Mirova Global Green is 2.69 times less risky than Baron Health. It trades about 0.09 of its potential returns per unit of risk. Baron Health Care is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,849 in Baron Health Care on September 2, 2024 and sell it today you would earn a total of 222.00 from holding Baron Health Care or generate 12.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirova Global Green vs. Baron Health Care
Performance |
| Timeline |
| Mirova Global Green |
| Baron Health Care |
Mirova Global and Baron Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Baron Health
The main advantage of trading using opposite Mirova Global and Baron Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, Baron Health 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 Baron Health will offset losses from the drop in Baron Health's long position.| Mirova Global vs. Fidelity Advisor Gold | Mirova Global vs. Goldman Sachs Esg | Mirova Global vs. Gabelli Gold Fund | Mirova Global vs. Global Gold Fund |
| Baron Health vs. Lgm Risk Managed | Baron Health vs. Western Asset High | Baron Health vs. Pace High Yield | Baron Health vs. Pioneer High Yield |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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