Correlation Between Mirova Global and Barings Active
Can any of the company-specific risk be diversified away by investing in both Mirova Global and Barings Active 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 Barings Active 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 Barings Active Short, you can compare the effects of market volatilities on Mirova Global and Barings Active 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 Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Barings Active.
Diversification Opportunities for Mirova Global and Barings Active
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mirova and Barings is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Barings Active Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Active 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 Barings Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Active Short has no effect on the direction of Mirova Global i.e., Mirova Global and Barings Active go up and down completely randomly.
Pair Corralation between Mirova Global and Barings Active
Assuming the 90 days horizon Mirova Global Green is expected to generate 2.6 times more return on investment than Barings Active. However, Mirova Global is 2.6 times more volatile than Barings Active Short. It trades about 0.17 of its potential returns per unit of risk. Barings Active Short is currently generating about 0.26 per unit of risk. If you would invest 856.00 in Mirova Global Green on November 27, 2024 and sell it today you would earn a total of 8.00 from holding Mirova Global Green or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirova Global Green vs. Barings Active Short
Performance |
| Timeline |
| Mirova Global Green |
| Barings Active Short |
Mirova Global and Barings Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Barings Active
The main advantage of trading using opposite Mirova Global and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, Barings Active 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 Barings Active will offset losses from the drop in Barings Active's long position.| Mirova Global vs. Pro Blend Servative Term | Mirova Global vs. Ms Global Fixed | Mirova Global vs. Gmo Global Equity | Mirova Global vs. Nationwide E Plus |
| Barings Active vs. Glg Intl Small | Barings Active vs. Versatile Bond Portfolio | Barings Active vs. Tfa Alphagen Growth | Barings Active vs. Rbb Fund |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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