Correlation Between Mirova Global and Kinetics Global
Can any of the company-specific risk be diversified away by investing in both Mirova Global and Kinetics Global 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 Kinetics Global 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 Kinetics Global Fund, you can compare the effects of market volatilities on Mirova Global and Kinetics Global 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 Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Kinetics Global.
Diversification Opportunities for Mirova Global and Kinetics Global
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mirova and Kinetics is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global 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 Kinetics Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Global has no effect on the direction of Mirova Global i.e., Mirova Global and Kinetics Global go up and down completely randomly.
Pair Corralation between Mirova Global and Kinetics Global
Assuming the 90 days horizon Mirova Global is expected to generate 169.98 times less return on investment than Kinetics Global. But when comparing it to its historical volatility, Mirova Global Green is 6.7 times less risky than Kinetics Global. It trades about 0.03 of its potential returns per unit of risk. Kinetics Global Fund is currently generating about 0.68 of returns per unit of risk over similar time horizon. If you would invest 1,309 in Kinetics Global Fund on August 24, 2024 and sell it today you would earn a total of 303.00 from holding Kinetics Global Fund or generate 23.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mirova Global Green vs. Kinetics Global Fund
Performance |
| Timeline |
| Mirova Global Green |
| Kinetics Global |
Mirova Global and Kinetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Kinetics Global
The main advantage of trading using opposite Mirova Global and Kinetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, Kinetics Global 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 Kinetics Global will offset losses from the drop in Kinetics Global's long position.| Mirova Global vs. Vanguard Total International | Mirova Global vs. Vanguard Total International | Mirova Global vs. Vanguard Total International | Mirova Global vs. Vanguard Total International |
| Kinetics Global vs. American Funds American | Kinetics Global vs. American Funds American | Kinetics Global vs. American Balanced | Kinetics Global vs. American Balanced Fund |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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