Correlation Between Mirova Global and Alger Global
Can any of the company-specific risk be diversified away by investing in both Mirova Global and Alger 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 Alger 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 Alger Global Growth, you can compare the effects of market volatilities on Mirova Global and Alger 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 Alger Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Alger Global.
Diversification Opportunities for Mirova Global and Alger Global
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mirova and Alger is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Alger Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Global Growth 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 Alger Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Global Growth has no effect on the direction of Mirova Global i.e., Mirova Global and Alger Global go up and down completely randomly.
Pair Corralation between Mirova Global and Alger Global
Assuming the 90 days horizon Mirova Global is expected to generate 12.83 times less return on investment than Alger Global. But when comparing it to its historical volatility, Mirova Global Green is 4.79 times less risky than Alger Global. It trades about 0.06 of its potential returns per unit of risk. Alger Global Growth is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,903 in Alger Global Growth on August 28, 2024 and sell it today you would earn a total of 85.00 from holding Alger Global Growth or generate 2.93% 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. Alger Global Growth
Performance |
| Timeline |
| Mirova Global Green |
| Alger Global Growth |
Mirova Global and Alger Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Alger Global
The main advantage of trading using opposite Mirova Global and Alger Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, Alger 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 Alger Global will offset losses from the drop in Alger Global's long position.| Mirova Global vs. Ultra Short Term Fixed | Mirova Global vs. California Bond Fund | Mirova Global vs. Victory High Income | Mirova Global vs. Barings Active Short |
| Alger Global vs. Alger Midcap Growth | Alger Global vs. Alger Midcap Growth | Alger Global vs. Alger Mid Cap | Alger Global vs. Alger Small 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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