Correlation Between Angel Oak and Mirova Global
Can any of the company-specific risk be diversified away by investing in both Angel Oak 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 Angel Oak and Mirova Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Financial and Mirova Global Green, you can compare the effects of market volatilities on Angel Oak 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 Angel Oak with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Mirova Global.
Diversification Opportunities for Angel Oak and Mirova Global
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Angel and Mirova is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial 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 Angel Oak 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 Angel Oak Financial 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 Angel Oak i.e., Angel Oak and Mirova Global go up and down completely randomly.
Pair Corralation between Angel Oak and Mirova Global
Assuming the 90 days horizon Angel Oak is expected to generate 2.76 times less return on investment than Mirova Global. But when comparing it to its historical volatility, Angel Oak Financial is 1.35 times less risky than Mirova Global. It trades about 0.06 of its potential returns per unit of risk. Mirova Global Green is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 803.00 in Mirova Global Green on September 1, 2024 and sell it today you would earn a total of 83.00 from holding Mirova Global Green or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Mirova Global Green
Performance |
| Timeline |
| Angel Oak Financial |
| Mirova Global Green |
Angel Oak and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Mirova Global
The main advantage of trading using opposite Angel Oak and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak 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.| Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard 500 Index | Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard Total Stock |
| Mirova Global vs. Bbh Partner Fund | Mirova Global vs. Scharf Global Opportunity | Mirova Global vs. T Rowe Price | Mirova Global vs. Volumetric Fund Volumetric |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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