Correlation Between Kinetics Global and Mirova Global
Can any of the company-specific risk be diversified away by investing in both Kinetics 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 Kinetics 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 Kinetics Global Fund and Mirova Global Green, you can compare the effects of market volatilities on Kinetics 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 Kinetics Global with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Mirova Global.
Diversification Opportunities for Kinetics Global and Mirova Global
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kinetics and Mirova is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global 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 Kinetics 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 Kinetics Global 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 Kinetics Global i.e., Kinetics Global and Mirova Global go up and down completely randomly.
Pair Corralation between Kinetics Global and Mirova Global
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 10.87 times more return on investment than Mirova Global. However, Kinetics Global is 10.87 times more volatile than Mirova Global Green. It trades about 0.48 of its potential returns per unit of risk. Mirova Global Green is currently generating about 0.36 per unit of risk. If you would invest 1,481 in Kinetics Global Fund on September 1, 2024 and sell it today you would earn a total of 328.00 from holding Kinetics Global Fund or generate 22.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kinetics Global Fund vs. Mirova Global Green
Performance |
| Timeline |
| Kinetics Global |
| Mirova Global Green |
Kinetics Global and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Mirova Global
The main advantage of trading using opposite Kinetics Global and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics 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.| Kinetics Global vs. Kinetics Internet Fund | Kinetics Global vs. Kinetics Paradigm Fund | Kinetics Global vs. Jacob Internet Fund | Kinetics Global vs. Kinetics Small Cap |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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