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 Growth, 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
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mirova and The is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford 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 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 Growth 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 is expected to generate 6.63 times less return on investment than The Hartford. But when comparing it to its historical volatility, Mirova Global Green is 3.6 times less risky than The Hartford. It trades about 0.06 of its potential returns per unit of risk. The Hartford Growth is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,263 in The Hartford Growth on September 1, 2024 and sell it today you would earn a total of 2,508 from holding The Hartford Growth or generate 76.86% 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. The Hartford Growth
Performance |
| Timeline |
| Mirova Global Green |
| Hartford Growth |
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. Bbh Partner Fund | Mirova Global vs. Scharf Global Opportunity | Mirova Global vs. T Rowe Price | Mirova Global vs. Volumetric Fund Volumetric |
| The Hartford vs. Allianzgi Convertible Income | The Hartford vs. The Gamco Global | The Hartford vs. Fidelity Sai Convertible | The Hartford vs. Lord Abbett Convertible |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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