Correlation Between Absolute Core and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both Absolute Core and Natixis ETF 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 Absolute Core and Natixis ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Absolute Core Strategy and Natixis ETF Trust, you can compare the effects of market volatilities on Absolute Core and Natixis ETF 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 Absolute Core with a short position of Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Absolute Core and Natixis ETF.
Diversification Opportunities for Absolute Core and Natixis ETF
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Absolute and Natixis is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Absolute Core Strategy and Natixis ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis ETF Trust and Absolute Core 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 Absolute Core Strategy are associated (or correlated) with Natixis ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis ETF Trust has no effect on the direction of Absolute Core i.e., Absolute Core and Natixis ETF go up and down completely randomly.
Pair Corralation between Absolute Core and Natixis ETF
Given the investment horizon of 90 days Absolute Core is expected to generate 71.04 times less return on investment than Natixis ETF. But when comparing it to its historical volatility, Absolute Core Strategy is 91.94 times less risky than Natixis ETF. It trades about 0.07 of its potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Natixis ETF Trust on September 13, 2024 and sell it today you would earn a total of 4,069 from holding Natixis ETF Trust or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 74.7% |
| Values | Daily Returns |
Absolute Core Strategy vs. Natixis ETF Trust
Performance |
| Timeline |
| Absolute Core Strategy |
| Natixis ETF Trust |
Absolute Core and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Absolute Core and Natixis ETF
The main advantage of trading using opposite Absolute Core and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Absolute Core position performs unexpectedly, Natixis ETF 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 Natixis ETF will offset losses from the drop in Natixis ETF's long position.| Absolute Core vs. Vanguard Value Index | Absolute Core vs. Vanguard High Dividend | Absolute Core vs. iShares Russell 1000 | Absolute Core vs. iShares Core SP |
| Natixis ETF vs. iShares Factors Growth | Natixis ETF vs. Absolute Core Strategy | Natixis ETF vs. iShares ESG Advanced | Natixis ETF vs. PIMCO RAFI Dynamic |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |