Correlation Between Vanguard Large-cap and Mirova Global
Can any of the company-specific risk be diversified away by investing in both Vanguard Large-cap 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 Large-cap 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 Large Cap Index and Mirova Global Green, you can compare the effects of market volatilities on Vanguard Large-cap 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 Large-cap with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Large-cap and Mirova Global.
Diversification Opportunities for Vanguard Large-cap and Mirova Global
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VANGUARD and Mirova is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Large Cap Index 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 Large-cap 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 Large Cap Index 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 Large-cap i.e., Vanguard Large-cap and Mirova Global go up and down completely randomly.
Pair Corralation between Vanguard Large-cap and Mirova Global
Assuming the 90 days horizon Vanguard Large Cap Index is expected to generate 4.93 times more return on investment than Mirova Global. However, Vanguard Large-cap is 4.93 times more volatile than Mirova Global Green. It trades about 0.2 of its potential returns per unit of risk. Mirova Global Green is currently generating about 0.16 per unit of risk. If you would invest 57,655 in Vanguard Large Cap Index on June 10, 2025 and sell it today you would earn a total of 4,441 from holding Vanguard Large Cap Index or generate 7.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 19.35% |
| Values | Daily Returns |
Vanguard Large Cap Index vs. Mirova Global Green
Performance |
| Timeline |
| Vanguard Large Cap |
| Mirova Global Green |
Risk-Adjusted Performance
Good
Weak | Strong |
Vanguard Large-cap and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Large-cap and Mirova Global
The main advantage of trading using opposite Vanguard Large-cap and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Large-cap 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 Large-cap vs. Vanguard Total International | Vanguard Large-cap vs. Vanguard Total Bond | Vanguard Large-cap vs. Vanguard Value Index | Vanguard Large-cap vs. Vanguard Developed Markets |
| Mirova Global vs. Cref Money Market | Mirova Global vs. Money Market Obligations | Mirova Global vs. Prudential Government Money | Mirova Global vs. Hsbc Treasury Money |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |