Correlation Between Columbia Convertible and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Columbia Convertible 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 Columbia Convertible and Natixis Oakmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Vertible Securities and Natixis Oakmark Fund, you can compare the effects of market volatilities on Columbia Convertible 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 Columbia Convertible with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Convertible and Natixis Oakmark.
Diversification Opportunities for Columbia Convertible and Natixis Oakmark
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Columbia and Natixis is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Vertible Securities and Natixis Oakmark Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark and Columbia Convertible 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 Columbia Vertible Securities 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 has no effect on the direction of Columbia Convertible i.e., Columbia Convertible and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Columbia Convertible and Natixis Oakmark
Assuming the 90 days horizon Columbia Convertible is expected to generate 1.31 times less return on investment than Natixis Oakmark. But when comparing it to its historical volatility, Columbia Vertible Securities is 1.92 times less risky than Natixis Oakmark. It trades about 0.09 of its potential returns per unit of risk. Natixis Oakmark Fund is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,511 in Natixis Oakmark Fund on September 2, 2024 and sell it today you would earn a total of 812.00 from holding Natixis Oakmark Fund or generate 32.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Vertible Securities vs. Natixis Oakmark Fund
Performance |
| Timeline |
| Columbia Convertible |
| Natixis Oakmark |
Columbia Convertible and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Convertible and Natixis Oakmark
The main advantage of trading using opposite Columbia Convertible and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Convertible 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.| Columbia Convertible vs. Legg Mason Partners | Columbia Convertible vs. Qs Small Capitalization | Columbia Convertible vs. Small Pany Growth | Columbia Convertible vs. Baird Smallmid Cap |
| Natixis Oakmark vs. Asg Managed Futures | Natixis Oakmark vs. Asg Managed Futures | Natixis Oakmark vs. Natixis Oakmark International | 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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