Correlation Between Aam Select and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Aam 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 Aam 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 Aam Select Income and Natixis Oakmark International, you can compare the effects of market volatilities on Aam 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 Aam Select with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam Select and Natixis Oakmark.
Diversification Opportunities for Aam Select and Natixis Oakmark
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aam and Natixis is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aam Select Income 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 Aam 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 Aam Select Income 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 Aam Select i.e., Aam Select and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Aam Select and Natixis Oakmark
Assuming the 90 days horizon Aam Select is expected to generate 1.23 times less return on investment than Natixis Oakmark. But when comparing it to its historical volatility, Aam Select Income is 2.54 times less risky than Natixis Oakmark. It trades about 0.05 of its potential returns per unit of risk. Natixis Oakmark International is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,240 in Natixis Oakmark International on September 2, 2024 and sell it today you would earn a total of 136.00 from holding Natixis Oakmark International or generate 10.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aam Select Income vs. Natixis Oakmark International
Performance |
| Timeline |
| Aam Select Income |
| Natixis Oakmark Inte |
Aam Select and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aam Select and Natixis Oakmark
The main advantage of trading using opposite Aam Select and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam 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.| Aam Select vs. Aamhimco Short Duration | Aam Select vs. Aamhimco Short Duration | Aam Select vs. Aambahl Gaynor Income | Aam Select vs. Aam Select Income |
| Natixis Oakmark vs. Rbb Fund | Natixis Oakmark vs. Aam Select Income | Natixis Oakmark vs. T Rowe Price | Natixis Oakmark vs. Ab Value Fund |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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