Correlation Between Financial Industries and Mirova Global
Can any of the company-specific risk be diversified away by investing in both Financial Industries 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 Financial Industries and Mirova Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Financial Industries Fund and Mirova Global Green, you can compare the effects of market volatilities on Financial Industries 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 Financial Industries with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Industries and Mirova Global.
Diversification Opportunities for Financial Industries and Mirova Global
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Financial and Mirova is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Financial Industries 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 Financial Industries 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 Financial Industries 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 Financial Industries i.e., Financial Industries and Mirova Global go up and down completely randomly.
Pair Corralation between Financial Industries and Mirova Global
Assuming the 90 days horizon Financial Industries Fund is expected to generate 6.12 times more return on investment than Mirova Global. However, Financial Industries is 6.12 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 0.28 per unit of risk. If you would invest 1,866 in Financial Industries Fund on June 7, 2025 and sell it today you would earn a total of 54.00 from holding Financial Industries Fund or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 21.31% |
| Values | Daily Returns |
Financial Industries Fund vs. Mirova Global Green
Performance |
| Timeline |
| Financial Industries |
| Mirova Global Green |
Risk-Adjusted Performance
Solid
Weak | Strong |
Financial Industries and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial Industries and Mirova Global
The main advantage of trading using opposite Financial Industries and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Industries 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.| Financial Industries vs. Angel Oak Multi Strategy | Financial Industries vs. Payden Emerging Markets | Financial Industries vs. Ashmore Emerging Markets | Financial Industries vs. Victory Diversified Stock |
| Mirova Global vs. Financial Industries Fund | Mirova Global vs. Angel Oak Financial | Mirova Global vs. John Hancock Financial | Mirova Global vs. Prudential Financial Services |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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