Correlation Between Main Buywrite and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both Main Buywrite 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 Main Buywrite and Natixis ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Main Buywrite ETF and Natixis ETF Trust, you can compare the effects of market volatilities on Main Buywrite 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 Main Buywrite with a short position of Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Main Buywrite and Natixis ETF.
Diversification Opportunities for Main Buywrite and Natixis ETF
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Main and Natixis is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Main Buywrite ETF 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 Main Buywrite 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 Main Buywrite ETF 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 Main Buywrite i.e., Main Buywrite and Natixis ETF go up and down completely randomly.
Pair Corralation between Main Buywrite and Natixis ETF
Given the investment horizon of 90 days Main Buywrite is expected to generate 37.14 times less return on investment than Natixis ETF. But when comparing it to its historical volatility, Main Buywrite ETF is 3.17 times less risky than Natixis ETF. It trades about 0.01 of its potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 5,356 in Natixis ETF Trust on August 26, 2024 and sell it today you would earn a total of 152.00 from holding Natixis ETF Trust or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Main Buywrite ETF vs. Natixis ETF Trust
Performance |
| Timeline |
| Main Buywrite ETF |
| Natixis ETF Trust |
Main Buywrite and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Main Buywrite and Natixis ETF
The main advantage of trading using opposite Main Buywrite and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Main Buywrite 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.The idea behind Main Buywrite ETF and Natixis ETF Trust 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.| Natixis ETF vs. Global X Dow | Natixis ETF vs. AdvisorShares STAR Global | Natixis ETF vs. Global X Funds | Natixis ETF vs. FT Vest Dow |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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