Correlation Between Vanguard Global and Mirova Global
Can any of the company-specific risk be diversified away by investing in both Vanguard Global 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 Vanguard Global and Mirova Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Global Credit and Mirova Global Green, you can compare the effects of market volatilities on Vanguard Global 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 Vanguard Global with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Global and Mirova Global.
Diversification Opportunities for Vanguard Global and Mirova Global
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VANGUARD and Mirova is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Global Credit 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 Vanguard 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 Vanguard Global Credit 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 Vanguard Global i.e., Vanguard Global and Mirova Global go up and down completely randomly.
Pair Corralation between Vanguard Global and Mirova Global
Assuming the 90 days horizon Vanguard Global Credit is expected to generate 1.26 times more return on investment than Mirova Global. However, Vanguard Global is 1.26 times more volatile than Mirova Global Green. It trades about -0.06 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 1,926 in Vanguard Global Credit on August 25, 2024 and sell it today you would lose (6.00) from holding Vanguard Global Credit or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Global Credit vs. Mirova Global Green
Performance |
| Timeline |
| Vanguard Global Credit |
| Mirova Global Green |
Vanguard Global and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Global and Mirova Global
The main advantage of trading using opposite Vanguard Global and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Global 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.| Vanguard Global vs. Vanguard Materials Index | Vanguard Global vs. Vanguard Limited Term Tax Exempt | Vanguard Global vs. Vanguard Limited Term Tax Exempt | Vanguard Global vs. Vanguard Global Minimum |
| Mirova Global vs. VanEck Green Bond | Mirova Global vs. Calvert Green Bond | Mirova Global vs. Tiaa Cref Social Choice | Mirova Global vs. Asg Managed Futures |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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