Correlation Between Redwood Systematic and Mirova Global
Can any of the company-specific risk be diversified away by investing in both Redwood Systematic 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 Redwood Systematic and Mirova Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Redwood Systematic Macro and Mirova Global Green, you can compare the effects of market volatilities on Redwood Systematic 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 Redwood Systematic with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Redwood Systematic and Mirova Global.
Diversification Opportunities for Redwood Systematic and Mirova Global
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Redwood and Mirova is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Redwood Systematic Macro 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 Redwood Systematic 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 Redwood Systematic Macro 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 Redwood Systematic i.e., Redwood Systematic and Mirova Global go up and down completely randomly.
Pair Corralation between Redwood Systematic and Mirova Global
Assuming the 90 days horizon Redwood Systematic Macro is expected to under-perform the Mirova Global. In addition to that, Redwood Systematic is 7.14 times more volatile than Mirova Global Green. It trades about -0.24 of its total potential returns per unit of risk. Mirova Global Green is currently generating about 0.21 per unit of volatility. If you would invest 854.00 in Mirova Global Green on January 12, 2025 and sell it today you would earn a total of 8.00 from holding Mirova Global Green or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Redwood Systematic Macro vs. Mirova Global Green
Performance |
| Timeline |
| Redwood Systematic Macro |
| Mirova Global Green |
Redwood Systematic and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Redwood Systematic and Mirova Global
The main advantage of trading using opposite Redwood Systematic and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Redwood Systematic 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.| Redwood Systematic vs. Redwood Managed Volatility | Redwood Systematic vs. Redwood Managed Volatility | Redwood Systematic vs. Redwood Managed Volatility | Redwood Systematic vs. Redwood Alphafactor Tactical |
| Mirova Global vs. Fulcrum Diversified Absolute | Mirova Global vs. Putnam Diversified Income | Mirova Global vs. Global Diversified Income | Mirova Global vs. Harbor Diversified International |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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