Correlation Between GraniteShares ETF and Natixis Investment
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and Natixis Investment 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 GraniteShares ETF and Natixis Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares ETF Trust and Natixis Investment Managers, you can compare the effects of market volatilities on GraniteShares ETF and Natixis Investment 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 GraniteShares ETF with a short position of Natixis Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and Natixis Investment.
Diversification Opportunities for GraniteShares ETF and Natixis Investment
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GraniteShares and Natixis is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and Natixis Investment Managers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Investment and GraniteShares ETF 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 GraniteShares ETF Trust are associated (or correlated) with Natixis Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Investment has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and Natixis Investment go up and down completely randomly.
Pair Corralation between GraniteShares ETF and Natixis Investment
Given the investment horizon of 90 days GraniteShares ETF Trust is expected to generate 85.71 times more return on investment than Natixis Investment. However, GraniteShares ETF is 85.71 times more volatile than Natixis Investment Managers. It trades about 0.06 of its potential returns per unit of risk. Natixis Investment Managers is currently generating about 0.3 per unit of risk. If you would invest 5,100 in GraniteShares ETF Trust on September 1, 2024 and sell it today you would earn a total of 238.00 from holding GraniteShares ETF Trust or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 64.29% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. Natixis Investment Managers
Performance |
| Timeline |
| GraniteShares ETF Trust |
| Natixis Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
GraniteShares ETF and Natixis Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and Natixis Investment
The main advantage of trading using opposite GraniteShares ETF and Natixis Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, Natixis Investment 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 Investment will offset losses from the drop in Natixis Investment's long position.| GraniteShares ETF vs. GraniteShares ETF Trust | GraniteShares ETF vs. Direxion Shares ETF | GraniteShares ETF vs. Direxion Daily AMZN | GraniteShares ETF vs. Direxion Daily GOOGL |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |