Correlation Between Mirova Global and State Farm
Can any of the company-specific risk be diversified away by investing in both Mirova Global and State Farm 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 State Farm 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 State Farm Interim, you can compare the effects of market volatilities on Mirova Global and State Farm 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 State Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and State Farm.
Diversification Opportunities for Mirova Global and State Farm
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mirova and State is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and State Farm Interim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Farm Interim 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 State Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Farm Interim has no effect on the direction of Mirova Global i.e., Mirova Global and State Farm go up and down completely randomly.
Pair Corralation between Mirova Global and State Farm
Assuming the 90 days horizon Mirova Global Green is expected to generate 1.28 times more return on investment than State Farm. However, Mirova Global is 1.28 times more volatile than State Farm Interim. It trades about 0.14 of its potential returns per unit of risk. State Farm Interim is currently generating about 0.0 per unit of risk. If you would invest 878.00 in Mirova Global Green on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Mirova Global Green or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mirova Global Green vs. State Farm Interim
Performance |
| Timeline |
| Mirova Global Green |
| State Farm Interim |
Mirova Global and State Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and State Farm
The main advantage of trading using opposite Mirova Global and State Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, State Farm 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 State Farm will offset losses from the drop in State Farm's long position.| Mirova Global vs. Vanguard Total International | Mirova Global vs. Dfa Five Year Global | Mirova Global vs. HUMANA INC | Mirova Global vs. Aquagold International |
| State Farm vs. Maryland Tax Free Bond | State Farm vs. Mirova Global Green | State Farm vs. Rbc Bluebay Global | State Farm vs. Nebraska Municipal Fund |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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