Correlation Between Mirova Global and New World
Can any of the company-specific risk be diversified away by investing in both Mirova Global and New World 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 New World 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 New World Fund, you can compare the effects of market volatilities on Mirova Global and New World 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 New World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and New World.
Diversification Opportunities for Mirova Global and New World
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mirova and New is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and New World Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New World Fund 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 New World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New World Fund has no effect on the direction of Mirova Global i.e., Mirova Global and New World go up and down completely randomly.
Pair Corralation between Mirova Global and New World
Assuming the 90 days horizon Mirova Global Green is expected to generate 0.29 times more return on investment than New World. However, Mirova Global Green is 3.45 times less risky than New World. It trades about 0.36 of its potential returns per unit of risk. New World Fund is currently generating about -0.1 per unit of risk. If you would invest 874.00 in Mirova Global Green on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Mirova Global Green or generate 1.37% 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. New World Fund
Performance |
| Timeline |
| Mirova Global Green |
| New World Fund |
Mirova Global and New World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and New World
The main advantage of trading using opposite Mirova Global and New World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, New World 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 New World will offset losses from the drop in New World's long position.| Mirova Global vs. Bbh Partner Fund | Mirova Global vs. Scharf Global Opportunity | Mirova Global vs. T Rowe Price | Mirova Global vs. Volumetric Fund Volumetric |
| New World vs. Chestnut Street Exchange | New World vs. Dreyfus Institutional Reserves | New World vs. Bbh Trust | New World vs. Cref Money Market |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |