Correlation Between Mirova Global and The Fairholme
Can any of the company-specific risk be diversified away by investing in both Mirova Global and The Fairholme 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 The Fairholme 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 The Fairholme Fund, you can compare the effects of market volatilities on Mirova Global and The Fairholme 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 The Fairholme. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and The Fairholme.
Diversification Opportunities for Mirova Global and The Fairholme
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mirova and The is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and The Fairholme Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Fairholme 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 The Fairholme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Fairholme has no effect on the direction of Mirova Global i.e., Mirova Global and The Fairholme go up and down completely randomly.
Pair Corralation between Mirova Global and The Fairholme
Assuming the 90 days horizon Mirova Global is expected to generate 1.32 times less return on investment than The Fairholme. But when comparing it to its historical volatility, Mirova Global Green is 4.68 times less risky than The Fairholme. It trades about 0.06 of its potential returns per unit of risk. The Fairholme Fund is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,586 in The Fairholme Fund on January 11, 2025 and sell it today you would earn a total of 208.00 from holding The Fairholme Fund or generate 8.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.81% |
| Values | Daily Returns |
Mirova Global Green vs. The Fairholme Fund
Performance |
| Timeline |
| Mirova Global Green |
| The Fairholme |
Mirova Global and The Fairholme Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and The Fairholme
The main advantage of trading using opposite Mirova Global and The Fairholme positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global position performs unexpectedly, The Fairholme 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 The Fairholme will offset losses from the drop in The Fairholme's long position.| Mirova Global vs. Calvert Green Bond | Mirova Global vs. VanEck Green Bond | Mirova Global vs. Tiaa Cref Social Choice | Mirova Global vs. Asg Managed Futures |
| The Fairholme vs. Us Government Securities | The Fairholme vs. Fidelity Government Money | The Fairholme vs. Us Government Securities | The Fairholme vs. Franklin Adjustable Government |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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