Correlation Between American Beacon and Mirova Global
Can any of the company-specific risk be diversified away by investing in both American Beacon 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 American Beacon and Mirova Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon Stephens and Mirova Global Green, you can compare the effects of market volatilities on American Beacon 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 American Beacon with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Mirova Global.
Diversification Opportunities for American Beacon and Mirova Global
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between American and Mirova is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon Stephens 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 American Beacon 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 American Beacon Stephens 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 American Beacon i.e., American Beacon and Mirova Global go up and down completely randomly.
Pair Corralation between American Beacon and Mirova Global
Assuming the 90 days horizon American Beacon Stephens is expected to generate 2.93 times more return on investment than Mirova Global. However, American Beacon is 2.93 times more volatile than Mirova Global Green. It trades about 0.09 of its potential returns per unit of risk. Mirova Global Green is currently generating about 0.09 per unit of risk. If you would invest 3,135 in American Beacon Stephens on September 2, 2024 and sell it today you would earn a total of 1,085 from holding American Beacon Stephens or generate 34.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Beacon Stephens vs. Mirova Global Green
Performance |
| Timeline |
| American Beacon Stephens |
| Mirova Global Green |
American Beacon and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Beacon and Mirova Global
The main advantage of trading using opposite American Beacon and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon 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.| American Beacon vs. Barings Emerging Markets | American Beacon vs. Rbc Emerging Markets | American Beacon vs. Growth Strategy Fund | American Beacon vs. Origin Emerging Markets |
| Mirova Global vs. Fidelity Advisor Gold | Mirova Global vs. Goldman Sachs Esg | Mirova Global vs. Gabelli Gold Fund | Mirova Global vs. Global Gold 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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