Correlation Between Cardano and Natixis Sustainable
Can any of the company-specific risk be diversified away by investing in both Cardano and Natixis Sustainable 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 Cardano and Natixis Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardano and Natixis Sustainable Future, you can compare the effects of market volatilities on Cardano and Natixis Sustainable 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 Cardano with a short position of Natixis Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardano and Natixis Sustainable.
Diversification Opportunities for Cardano and Natixis Sustainable
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cardano and Natixis is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Cardano and Natixis Sustainable Future in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Sustainable and Cardano 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 Cardano are associated (or correlated) with Natixis Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Sustainable has no effect on the direction of Cardano i.e., Cardano and Natixis Sustainable go up and down completely randomly.
Pair Corralation between Cardano and Natixis Sustainable
Assuming the 90 days trading horizon Cardano is expected to generate 8.0 times more return on investment than Natixis Sustainable. However, Cardano is 8.0 times more volatile than Natixis Sustainable Future. It trades about 0.08 of its potential returns per unit of risk. Natixis Sustainable Future is currently generating about 0.06 per unit of risk. If you would invest 39.00 in Cardano on November 2, 2024 and sell it today you would earn a total of 57.00 from holding Cardano or generate 146.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 60.32% |
| Values | Daily Returns |
Cardano vs. Natixis Sustainable Future
Performance |
| Timeline |
| Cardano |
| Natixis Sustainable |
Cardano and Natixis Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardano and Natixis Sustainable
The main advantage of trading using opposite Cardano and Natixis Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardano position performs unexpectedly, Natixis Sustainable 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 Sustainable will offset losses from the drop in Natixis Sustainable's long position.The idea behind Cardano and Natixis Sustainable Future 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.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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |