Correlation Between Mirova Global and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Mirova Global and Baillie Gifford 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 Baillie Gifford 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 Baillie Gifford International, you can compare the effects of market volatilities on Mirova Global and Baillie Gifford 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 Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Baillie Gifford.
Diversification Opportunities for Mirova Global and Baillie Gifford
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mirova and Baillie is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Baillie Gifford International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Inte 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 Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford Inte has no effect on the direction of Mirova Global i.e., Mirova Global and Baillie Gifford go up and down completely randomly.
Pair Corralation between Mirova Global and Baillie Gifford
Assuming the 90 days horizon Mirova Global is expected to generate 3.74 times less return on investment than Baillie Gifford. But when comparing it to its historical volatility, Mirova Global Green is 4.51 times less risky than Baillie Gifford. It trades about 0.1 of its potential returns per unit of risk. Baillie Gifford International is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 628.00 in Baillie Gifford International on September 4, 2024 and sell it today you would earn a total of 162.00 from holding Baillie Gifford International or generate 25.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Mirova Global Green vs. Baillie Gifford International
Performance |
| Timeline |
| Mirova Global Green |
| Baillie Gifford Inte |
Mirova Global and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Baillie Gifford
The main advantage of trading using opposite Mirova Global and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.| Mirova Global vs. Hood River New | Mirova Global vs. T Rowe Price | Mirova Global vs. T Rowe Price | Mirova Global vs. T Rowe Price |
| Baillie Gifford vs. The Eafe Pure | Baillie Gifford vs. The Long Term | Baillie Gifford vs. Baillie Gifford International | Baillie Gifford vs. Baillie Gifford China |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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