Correlation Between Mirova Global and Dana Small
Can any of the company-specific risk be diversified away by investing in both Mirova Global and Dana Small 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 Dana Small 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 Dana Small Cap, you can compare the effects of market volatilities on Mirova Global and Dana Small 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 Dana Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Dana Small.
Diversification Opportunities for Mirova Global and Dana Small
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mirova and Dana is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Dana Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Small Cap 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 Dana Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Small Cap has no effect on the direction of Mirova Global i.e., Mirova Global and Dana Small go up and down completely randomly.
Pair Corralation between Mirova Global and Dana Small
Assuming the 90 days horizon Mirova Global is expected to generate 2.64 times less return on investment than Dana Small. But when comparing it to its historical volatility, Mirova Global Green is 3.69 times less risky than Dana Small. It trades about 0.08 of its potential returns per unit of risk. Dana Small Cap is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,145 in Dana Small Cap on September 14, 2024 and sell it today you would earn a total of 396.00 from holding Dana Small Cap or generate 34.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirova Global Green vs. Dana Small Cap
Performance |
| Timeline |
| Mirova Global Green |
| Dana Small Cap |
Mirova Global and Dana Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Dana Small
The main advantage of trading using opposite Mirova Global and Dana Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, Dana Small 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 Dana Small will offset losses from the drop in Dana Small's long position.| Mirova Global vs. Gabelli Gold Fund | Mirova Global vs. Europac Gold Fund | Mirova Global vs. Fidelity Advisor Gold | Mirova Global vs. Franklin Gold Precious |
| Dana Small vs. Dana Large Cap | Dana Small vs. Dana Large Cap | Dana Small vs. Dana Epiphany Esg | Dana Small vs. Mirova Global Green |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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