Correlation Between Mirova Global and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Mirova Global and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Large, you can compare the effects of market volatilities on Mirova Global and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Goldman Sachs.
Diversification Opportunities for Mirova Global and Goldman Sachs
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mirova and Goldman is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Goldman Sachs Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Large 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Large has no effect on the direction of Mirova Global i.e., Mirova Global and Goldman Sachs go up and down completely randomly.
Pair Corralation between Mirova Global and Goldman Sachs
Assuming the 90 days horizon Mirova Global is expected to generate 4.39 times less return on investment than Goldman Sachs. But when comparing it to its historical volatility, Mirova Global Green is 2.66 times less risky than Goldman Sachs. It trades about 0.1 of its potential returns per unit of risk. Goldman Sachs Large is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,663 in Goldman Sachs Large on November 30, 2024 and sell it today you would earn a total of 77.00 from holding Goldman Sachs Large or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirova Global Green vs. Goldman Sachs Large
Performance |
| Timeline |
| Mirova Global Green |
| Goldman Sachs Large |
Mirova Global and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Goldman Sachs
The main advantage of trading using opposite Mirova Global and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Mirova Global vs. Arrow Managed Futures | Mirova Global vs. Furyax | Mirova Global vs. Fsultx | Mirova Global vs. Fznopx |
| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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