Correlation Between Mirova Global and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Mirova Global and Federated Hermes 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 Federated Hermes 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 Federated Hermes Inflation, you can compare the effects of market volatilities on Mirova Global and Federated Hermes 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 Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Federated Hermes.
Diversification Opportunities for Mirova Global and Federated Hermes
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mirova and Federated is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Federated Hermes Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Inf 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 Federated Hermes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Hermes Inf has no effect on the direction of Mirova Global i.e., Mirova Global and Federated Hermes go up and down completely randomly.
Pair Corralation between Mirova Global and Federated Hermes
Assuming the 90 days horizon Mirova Global Green is expected to generate 0.72 times more return on investment than Federated Hermes. However, Mirova Global Green is 1.39 times less risky than Federated Hermes. It trades about 0.14 of its potential returns per unit of risk. Federated Hermes Inflation is currently generating about 0.07 per unit of risk. If you would invest 878.00 in Mirova Global Green on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Mirova Global Green or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mirova Global Green vs. Federated Hermes Inflation
Performance |
| Timeline |
| Mirova Global Green |
| Federated Hermes Inf |
Mirova Global and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Federated Hermes
The main advantage of trading using opposite Mirova Global and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, Federated Hermes 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 Federated Hermes will offset losses from the drop in Federated Hermes' long position.| Mirova Global vs. Vanguard Total International | Mirova Global vs. Dfa Five Year Global | Mirova Global vs. HUMANA INC | Mirova Global vs. Aquagold International |
| Federated Hermes vs. Touchstone Ohio Tax | Federated Hermes vs. Angel Oak Financial | Federated Hermes vs. John Hancock Money | Federated Hermes 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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