Correlation Between Mirova Global and Barings Global
Can any of the company-specific risk be diversified away by investing in both Mirova Global and Barings 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 Mirova Global and Barings Global 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 Global Floating, you can compare the effects of market volatilities on Mirova Global and Barings 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 Mirova Global with a short position of Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Barings Global.
Diversification Opportunities for Mirova Global and Barings Global
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mirova and Barings is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Barings Global Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Global Floating 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Global Floating has no effect on the direction of Mirova Global i.e., Mirova Global and Barings Global go up and down completely randomly.
Pair Corralation between Mirova Global and Barings Global
Assuming the 90 days horizon Mirova Global Green is expected to generate 1.57 times more return on investment than Barings Global. However, Mirova Global is 1.57 times more volatile than Barings Global Floating. It trades about 0.13 of its potential returns per unit of risk. Barings Global Floating is currently generating about 0.18 per unit of risk. If you would invest 843.00 in Mirova Global Green on August 24, 2024 and sell it today you would earn a total of 36.00 from holding Mirova Global Green or generate 4.27% 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. Barings Global Floating
Performance |
| Timeline |
| Mirova Global Green |
| Barings Global Floating |
Mirova Global and Barings Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Barings Global
The main advantage of trading using opposite Mirova Global and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, Barings 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 Barings Global will offset losses from the drop in Barings Global's long position.| Mirova Global vs. Davis Financial Fund | Mirova Global vs. Gabelli Global Financial | Mirova Global vs. Icon Financial Fund | Mirova Global vs. Prudential Jennison Financial |
| Barings Global vs. Floating Rate Fund | Barings Global vs. Lord Abbett Inv | Barings Global vs. HUMANA INC | Barings Global vs. Aquagold International |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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