Correlation Between Mirova Global and The Hartford
Can any of the company-specific risk be diversified away by investing in both Mirova Global and The Hartford 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 The Hartford 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 The Hartford Checks, you can compare the effects of market volatilities on Mirova Global and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and The Hartford.
Diversification Opportunities for Mirova Global and The Hartford
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mirova and The is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and The Hartford Checks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Checks 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Checks has no effect on the direction of Mirova Global i.e., Mirova Global and The Hartford go up and down completely randomly.
Pair Corralation between Mirova Global and The Hartford
Assuming the 90 days horizon Mirova Global Green is expected to under-perform the The Hartford. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mirova Global Green is 2.28 times less risky than The Hartford. The mutual fund trades about -0.2 of its potential returns per unit of risk. The The Hartford Checks is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 999.00 in The Hartford Checks on October 20, 2024 and sell it today you would earn a total of 19.00 from holding The Hartford Checks or generate 1.9% 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. The Hartford Checks
Performance |
| Timeline |
| Mirova Global Green |
| Hartford Checks |
Mirova Global and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and The Hartford
The main advantage of trading using opposite Mirova Global and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Mirova Global vs. Us Vector Equity | Mirova Global vs. Locorr Dynamic Equity | Mirova Global vs. Greenspring Fund Retail | Mirova Global vs. Siit Equity Factor |
| The Hartford vs. Fidelity New Markets | The Hartford vs. Barings Emerging Markets | The Hartford vs. Kinetics Market Opportunities | The Hartford vs. Investec Emerging Markets |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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