Correlation Between Artisan Global and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Artisan Global 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 Artisan Global and Natixis Oakmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Global Unconstrained and Natixis Oakmark Fund, you can compare the effects of market volatilities on Artisan Global 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 Artisan Global with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Natixis Oakmark.
Diversification Opportunities for Artisan Global and Natixis Oakmark
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Natixis is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Unconstrained and Natixis Oakmark Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark and Artisan Global 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 Artisan Global Unconstrained 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 has no effect on the direction of Artisan Global i.e., Artisan Global and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Artisan Global and Natixis Oakmark
Assuming the 90 days horizon Artisan Global is expected to generate 1.62 times less return on investment than Natixis Oakmark. But when comparing it to its historical volatility, Artisan Global Unconstrained is 6.2 times less risky than Natixis Oakmark. It trades about 0.16 of its potential returns per unit of risk. Natixis Oakmark Fund is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,059 in Natixis Oakmark Fund on September 3, 2024 and sell it today you would earn a total of 471.00 from holding Natixis Oakmark Fund or generate 22.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Global Unconstrained vs. Natixis Oakmark Fund
Performance |
| Timeline |
| Artisan Global Uncon |
| Natixis Oakmark |
Artisan Global and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Global and Natixis Oakmark
The main advantage of trading using opposite Artisan Global and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Global 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.| Artisan Global vs. Rationalpier 88 Convertible | Artisan Global vs. Virtus Convertible | Artisan Global vs. Rationalpier 88 Convertible | Artisan Global vs. Absolute Convertible Arbitrage |
| Natixis Oakmark vs. Artisan Global Unconstrained | Natixis Oakmark vs. Alliancebernstein Global High | Natixis Oakmark vs. Ab Global Risk | Natixis Oakmark vs. Mirova Global Green |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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