Correlation Between Ab Value and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Ab Value and Natixis Oakmark 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 Ab Value and Natixis Oakmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Value Fund and Natixis Oakmark International, you can compare the effects of market volatilities on Ab Value and Natixis Oakmark 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 Ab Value with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Value and Natixis Oakmark.
Diversification Opportunities for Ab Value and Natixis Oakmark
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ABVCX and Natixis is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ab Value Fund and Natixis Oakmark International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark Inte and Ab Value 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 Ab Value Fund are associated (or correlated) with Natixis Oakmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Oakmark Inte has no effect on the direction of Ab Value i.e., Ab Value and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Ab Value and Natixis Oakmark
Assuming the 90 days horizon Ab Value Fund is expected to generate 0.77 times more return on investment than Natixis Oakmark. However, Ab Value Fund is 1.31 times less risky than Natixis Oakmark. It trades about 0.15 of its potential returns per unit of risk. Natixis Oakmark International is currently generating about 0.0 per unit of risk. If you would invest 1,601 in Ab Value Fund on September 3, 2024 and sell it today you would earn a total of 475.00 from holding Ab Value Fund or generate 29.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Value Fund vs. Natixis Oakmark International
Performance |
| Timeline |
| Ab Value Fund |
| Natixis Oakmark Inte |
Ab Value and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Value and Natixis Oakmark
The main advantage of trading using opposite Ab Value and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Value position performs unexpectedly, Natixis Oakmark 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 Oakmark will offset losses from the drop in Natixis Oakmark's long position.| Ab Value vs. Dodge Cox Stock | Ab Value vs. American Funds American | Ab Value vs. American Funds American | Ab Value vs. American Mutual Fund |
| Natixis Oakmark vs. Oakmark International Fund | Natixis Oakmark vs. Dodge International Stock | Natixis Oakmark vs. Oakmark International Fund | Natixis Oakmark vs. Oakmark International Fund |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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