Correlation Between Mirova Global and Nebraska Municipal
Can any of the company-specific risk be diversified away by investing in both Mirova Global and Nebraska Municipal 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 Nebraska Municipal 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 Nebraska Municipal Fund, you can compare the effects of market volatilities on Mirova Global and Nebraska Municipal 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 Nebraska Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Nebraska Municipal.
Diversification Opportunities for Mirova Global and Nebraska Municipal
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mirova and Nebraska is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Nebraska Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nebraska Municipal 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 Nebraska Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nebraska Municipal has no effect on the direction of Mirova Global i.e., Mirova Global and Nebraska Municipal go up and down completely randomly.
Pair Corralation between Mirova Global and Nebraska Municipal
Assuming the 90 days horizon Mirova Global Green is expected to generate 1.07 times more return on investment than Nebraska Municipal. However, Mirova Global is 1.07 times more volatile than Nebraska Municipal Fund. It trades about 0.17 of its potential returns per unit of risk. Nebraska Municipal Fund is currently generating about 0.07 per unit of risk. If you would invest 856.00 in Mirova Global Green on November 27, 2024 and sell it today you would earn a total of 8.00 from holding Mirova Global Green or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirova Global Green vs. Nebraska Municipal Fund
Performance |
| Timeline |
| Mirova Global Green |
| Nebraska Municipal |
Mirova Global and Nebraska Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Nebraska Municipal
The main advantage of trading using opposite Mirova Global and Nebraska Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, Nebraska Municipal 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 Nebraska Municipal will offset losses from the drop in Nebraska Municipal's long position.| Mirova Global vs. Pro Blend Servative Term | Mirova Global vs. Ms Global Fixed | Mirova Global vs. Gmo Global Equity | Mirova Global vs. Nationwide E Plus |
| Nebraska Municipal vs. Aqr Managed Futures | Nebraska Municipal vs. The Hartford Inflation | Nebraska Municipal vs. Ab Bond Inflation | Nebraska Municipal vs. The Hartford Inflation |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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