Correlation Between Federated Mdt and Mirova Global
Can any of the company-specific risk be diversified away by investing in both Federated Mdt 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 Federated Mdt and Mirova Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Mdt Small and Mirova Global Green, you can compare the effects of market volatilities on Federated Mdt 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 Federated Mdt with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Mdt and Mirova Global.
Diversification Opportunities for Federated Mdt and Mirova Global
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Federated and Mirova is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Federated Mdt Small 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 Federated Mdt 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 Federated Mdt Small 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 Federated Mdt i.e., Federated Mdt and Mirova Global go up and down completely randomly.
Pair Corralation between Federated Mdt and Mirova Global
Assuming the 90 days horizon Federated Mdt Small is expected to generate 9.34 times more return on investment than Mirova Global. However, Federated Mdt is 9.34 times more volatile than Mirova Global Green. It trades about 0.22 of its potential returns per unit of risk. Mirova Global Green is currently generating about 0.22 per unit of risk. If you would invest 2,685 in Federated Mdt Small on June 2, 2025 and sell it today you would earn a total of 454.00 from holding Federated Mdt Small or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 28.13% |
| Values | Daily Returns |
Federated Mdt Small vs. Mirova Global Green
Performance |
| Timeline |
| Federated Mdt Small |
| Mirova Global Green |
Risk-Adjusted Performance
Solid
Weak | Strong |
Federated Mdt and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Mdt and Mirova Global
The main advantage of trading using opposite Federated Mdt and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Mdt 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.| Federated Mdt vs. Touchstone Mid Cap | Federated Mdt vs. Virtus Kar Small Cap | Federated Mdt vs. Mid Cap Growth | Federated Mdt vs. Harding Loevner International |
| Mirova Global vs. Gabelli Gold Fund | Mirova Global vs. Vy Goldman Sachs | Mirova Global vs. World Precious Minerals | Mirova Global vs. Goldman Sachs Flexible |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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