Correlation Between Nebraska Municipal and Mirova Global
Can any of the company-specific risk be diversified away by investing in both Nebraska Municipal and Mirova 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 Nebraska Municipal and Mirova Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nebraska Municipal Fund and Mirova Global Green, you can compare the effects of market volatilities on Nebraska Municipal and Mirova 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 Nebraska Municipal with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nebraska Municipal and Mirova Global.
Diversification Opportunities for Nebraska Municipal and Mirova Global
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nebraska and Mirova is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nebraska Municipal Fund and Mirova Global Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirova Global Green and Nebraska Municipal 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 Nebraska Municipal Fund are associated (or correlated) with Mirova Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirova Global Green has no effect on the direction of Nebraska Municipal i.e., Nebraska Municipal and Mirova Global go up and down completely randomly.
Pair Corralation between Nebraska Municipal and Mirova Global
Assuming the 90 days horizon Nebraska Municipal is expected to generate 2.83 times less return on investment than Mirova Global. But when comparing it to its historical volatility, Nebraska Municipal Fund is 1.07 times less risky than Mirova Global. It trades about 0.07 of its potential returns per unit of risk. Mirova Global Green is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 856.00 in Mirova Global Green on November 27, 2024 and sell it today you would earn a total of 8.00 from holding Mirova Global Green or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nebraska Municipal Fund vs. Mirova Global Green
Performance |
| Timeline |
| Nebraska Municipal |
| Mirova Global Green |
Nebraska Municipal and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nebraska Municipal and Mirova Global
The main advantage of trading using opposite Nebraska Municipal and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nebraska Municipal position performs unexpectedly, Mirova 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 Mirova Global will offset losses from the drop in Mirova Global's long position.| Nebraska Municipal vs. Aqr Managed Futures | Nebraska Municipal vs. The Hartford Inflation | Nebraska Municipal vs. Ab Bond Inflation | Nebraska Municipal vs. The Hartford Inflation |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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