Correlation Between Asg Managed and Mirova International

Can any of the company-specific risk be diversified away by investing in both Asg Managed and Mirova International 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 Asg Managed and Mirova International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Asg Managed Futures and Mirova International Sustainable, you can compare the effects of market volatilities on Asg Managed and Mirova International 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 Asg Managed with a short position of Mirova International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Managed and Mirova International.

Diversification Opportunities for Asg Managed and Mirova International

0.63

Correlation Coefficient

Asg Managed  Mirova International

Poor diversification

The 3 months correlation between Asg and Mirova is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Asg Managed Futures and Mirova International Sustainab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirova International and Asg Managed 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 Asg Managed Futures are associated (or correlated) with Mirova International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirova International has no effect on the direction of Asg Managed i.e., Asg Managed and Mirova International go up and down completely randomly.

Pair Corralation between Asg Managed and Mirova International

Assuming the 90 days horizon Asg Managed Futures is expected to generate 0.68 times more return on investment than Mirova International. However, Asg Managed Futures is 1.47 times less risky than Mirova International. It trades about -0.06 of its potential returns per unit of risk. Mirova International Sustainable is currently generating about -0.1 per unit of risk. If you would invest  896.00  in Asg Managed Futures on September 14, 2024 and sell it today you would lose (19.00) from holding Asg Managed Futures or give up 2.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Asg Managed Futures  vs.  Mirova International Sustainab

Asg Managed Futures

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asg Managed Futures has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Asg Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mirova International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mirova International Sustainable has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Mirova International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Asg Managed and Mirova International

The main advantage of trading using opposite Asg Managed and Mirova International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Managed position performs unexpectedly, Mirova International 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 International will offset losses from the drop in Mirova International's long position.

The idea behind Asg Managed Futures and Mirova International Sustainable pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.