Correlation Between Mirova Global and Aqr Global
Can any of the company-specific risk be diversified away by investing in both Mirova Global and Aqr 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 Aqr 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 Aqr Global Macro, you can compare the effects of market volatilities on Mirova Global and Aqr 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 Aqr Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Aqr Global.
Diversification Opportunities for Mirova Global and Aqr Global
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mirova and Aqr is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Aqr Global Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Global Macro 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 Aqr Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Global Macro has no effect on the direction of Mirova Global i.e., Mirova Global and Aqr Global go up and down completely randomly.
Pair Corralation between Mirova Global and Aqr Global
Assuming the 90 days horizon Mirova Global Green is expected to under-perform the Aqr Global. In addition to that, Mirova Global is 1.09 times more volatile than Aqr Global Macro. It trades about -0.36 of its total potential returns per unit of risk. Aqr Global Macro is currently generating about 0.07 per unit of volatility. If you would invest 937.00 in Aqr Global Macro on October 11, 2024 and sell it today you would earn a total of 7.00 from holding Aqr Global Macro or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirova Global Green vs. Aqr Global Macro
Performance |
| Timeline |
| Mirova Global Green |
| Aqr Global Macro |
Mirova Global and Aqr Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Aqr Global
The main advantage of trading using opposite Mirova Global and Aqr Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, Aqr 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 Aqr Global will offset losses from the drop in Aqr Global's long position.| Mirova Global vs. Pimco Diversified Income | Mirova Global vs. Conservative Balanced Allocation | Mirova Global vs. Manning Napier Diversified | Mirova Global vs. Putnam Diversified Income |
| Aqr Global vs. Victory Rs Partners | Aqr Global vs. Fidelity Small Cap | Aqr Global vs. Small Cap Value Fund | Aqr Global vs. Amg River Road |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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