Correlation Between Mirova Global and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Mirova Global and Old Westbury 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 Old Westbury 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 Old Westbury Large, you can compare the effects of market volatilities on Mirova Global and Old Westbury 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 Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Old Westbury.
Diversification Opportunities for Mirova Global and Old Westbury
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mirova and Old is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Old Westbury Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Large 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 Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Large has no effect on the direction of Mirova Global i.e., Mirova Global and Old Westbury go up and down completely randomly.
Pair Corralation between Mirova Global and Old Westbury
Assuming the 90 days horizon Mirova Global is expected to generate 7.03 times less return on investment than Old Westbury. But when comparing it to its historical volatility, Mirova Global Green is 1.96 times less risky than Old Westbury. It trades about 0.03 of its potential returns per unit of risk. Old Westbury Large is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,500 in Old Westbury Large on September 4, 2024 and sell it today you would earn a total of 650.00 from holding Old Westbury Large or generate 43.33% 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. Old Westbury Large
Performance |
| Timeline |
| Mirova Global Green |
| Old Westbury Large |
Mirova Global and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Old Westbury
The main advantage of trading using opposite Mirova Global and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Mirova Global vs. Hood River New | Mirova Global vs. T Rowe Price | Mirova Global vs. T Rowe Price | Mirova Global vs. T Rowe Price |
| Old Westbury vs. Us Government Securities | Old Westbury vs. Short Term Government Fund | Old Westbury vs. Prudential Government Income | Old Westbury vs. Us Government Plus |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |