Correlation Between Champlain Small and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Champlain Small 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 Champlain Small and Natixis Oakmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Small and Natixis Oakmark International, you can compare the effects of market volatilities on Champlain Small 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 Champlain Small with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Small and Natixis Oakmark.
Diversification Opportunities for Champlain Small and Natixis Oakmark
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Champlain and Natixis is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Small 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 Champlain Small 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 Champlain Small 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 Champlain Small i.e., Champlain Small and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Champlain Small and Natixis Oakmark
Assuming the 90 days horizon Champlain Small is expected to generate 1.36 times less return on investment than Natixis Oakmark. In addition to that, Champlain Small is 1.38 times more volatile than Natixis Oakmark International. It trades about 0.17 of its total potential returns per unit of risk. Natixis Oakmark International is currently generating about 0.31 per unit of volatility. If you would invest 1,371 in Natixis Oakmark International on September 15, 2024 and sell it today you would earn a total of 61.00 from holding Natixis Oakmark International or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Small vs. Natixis Oakmark International
Performance |
| Timeline |
| Champlain Small |
| Natixis Oakmark Inte |
Champlain Small and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Small and Natixis Oakmark
The main advantage of trading using opposite Champlain Small and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Small 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.| Champlain Small vs. Champlain Mid Cap | Champlain Small vs. Aberdeen Select International | Champlain Small vs. Marsico 21st Century | Champlain Small vs. Diamond Hill Large |
| Natixis Oakmark vs. Asg Managed Futures | Natixis Oakmark vs. Asg Managed Futures | Natixis Oakmark vs. Natixis Oakmark | Natixis Oakmark vs. Natixis Oakmark International |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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