Correlation Between Ab Select and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Ab Select 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 Select 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 Select Longshort and Natixis Oakmark Intl, you can compare the effects of market volatilities on Ab Select 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 Select with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Natixis Oakmark.
Diversification Opportunities for Ab Select and Natixis Oakmark
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASCLX and Natixis is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Longshort and Natixis Oakmark Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark Intl and Ab Select 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 Select Longshort 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 Intl has no effect on the direction of Ab Select i.e., Ab Select and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Ab Select and Natixis Oakmark
Assuming the 90 days horizon Ab Select Longshort is expected to generate 0.47 times more return on investment than Natixis Oakmark. However, Ab Select Longshort is 2.12 times less risky than Natixis Oakmark. It trades about 0.35 of its potential returns per unit of risk. Natixis Oakmark Intl is currently generating about -0.06 per unit of risk. If you would invest 1,353 in Ab Select Longshort on September 1, 2024 and sell it today you would earn a total of 55.00 from holding Ab Select Longshort or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ab Select Longshort vs. Natixis Oakmark Intl
Performance |
| Timeline |
| Ab Select Longshort |
| Natixis Oakmark Intl |
Ab Select and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Natixis Oakmark
The main advantage of trading using opposite Ab Select and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select 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 Select vs. Pace International Emerging | Ab Select vs. Goldman Sachs Emerging | Ab Select vs. Barings Emerging Markets | Ab Select vs. Artisan Emerging Markets |
| Natixis Oakmark vs. Prudential Health Sciences | Natixis Oakmark vs. The Gabelli Healthcare | Natixis Oakmark vs. Delaware Healthcare Fund | Natixis Oakmark vs. Invesco Global Health |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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