Correlation Between Mirova Global and Multi-manager High
Can any of the company-specific risk be diversified away by investing in both Mirova Global and Multi-manager High 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 Multi-manager High 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 Multi Manager High Yield, you can compare the effects of market volatilities on Mirova Global and Multi-manager High 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 Multi-manager High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Multi-manager High.
Diversification Opportunities for Mirova Global and Multi-manager High
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mirova and Multi-manager is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Multi Manager High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Manager High 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 Multi-manager High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Manager High has no effect on the direction of Mirova Global i.e., Mirova Global and Multi-manager High go up and down completely randomly.
Pair Corralation between Mirova Global and Multi-manager High
Assuming the 90 days horizon Mirova Global is expected to generate 1.01 times less return on investment than Multi-manager High. In addition to that, Mirova Global is 1.72 times more volatile than Multi Manager High Yield. It trades about 0.16 of its total potential returns per unit of risk. Multi Manager High Yield is currently generating about 0.27 per unit of volatility. If you would invest 842.00 in Multi Manager High Yield on November 5, 2024 and sell it today you would earn a total of 7.00 from holding Multi Manager High Yield or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirova Global Green vs. Multi Manager High Yield
Performance |
| Timeline |
| Mirova Global Green |
| Multi Manager High |
Mirova Global and Multi-manager High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Multi-manager High
The main advantage of trading using opposite Mirova Global and Multi-manager High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, Multi-manager High 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 Multi-manager High will offset losses from the drop in Multi-manager High's long position.| Mirova Global vs. Franklin Gold Precious | Mirova Global vs. Short Precious Metals | Mirova Global vs. James Balanced Golden | Mirova Global vs. Fidelity Advisor Gold |
| Multi-manager High vs. Aqr Risk Parity | Multi-manager High vs. The Hartford High | Multi-manager High vs. Calamos High Income | Multi-manager High vs. Massmutual Premier High |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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