Correlation Between Mirova Global and Catalyst/millburn
Can any of the company-specific risk be diversified away by investing in both Mirova Global and Catalyst/millburn 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 Catalyst/millburn 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 Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Mirova Global and Catalyst/millburn 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 Catalyst/millburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Catalyst/millburn.
Diversification Opportunities for Mirova Global and Catalyst/millburn
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mirova and Catalyst/millburn is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge 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 Catalyst/millburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of Mirova Global i.e., Mirova Global and Catalyst/millburn go up and down completely randomly.
Pair Corralation between Mirova Global and Catalyst/millburn
Assuming the 90 days horizon Mirova Global Green is expected to under-perform the Catalyst/millburn. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mirova Global Green is 2.37 times less risky than Catalyst/millburn. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Catalystmillburn Hedge Strategy is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 3,861 in Catalystmillburn Hedge Strategy on October 23, 2024 and sell it today you would earn a total of 106.00 from holding Catalystmillburn Hedge Strategy or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirova Global Green vs. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Mirova Global Green |
| Catalystmillburn Hedge |
Mirova Global and Catalyst/millburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Catalyst/millburn
The main advantage of trading using opposite Mirova Global and Catalyst/millburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, Catalyst/millburn 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 Catalyst/millburn will offset losses from the drop in Catalyst/millburn's long position.| Mirova Global vs. Artisan Select Equity | Mirova Global vs. Dreyfusstandish Global Fixed | Mirova Global vs. Doubleline Core Fixed | Mirova Global vs. Enhanced Fixed Income |
| Catalyst/millburn vs. Transamerica Asset Allocation | Catalyst/millburn vs. Qs Large Cap | Catalyst/millburn vs. Ab Global Bond | Catalyst/millburn vs. Rbc Funds Trust |
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 Stocks Directory module to find actively traded stocks across global markets.
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