Correlation Between DSJA and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both DSJA 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 DSJA and Natixis ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSJA and Natixis ETF Trust, you can compare the effects of market volatilities on DSJA 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 DSJA with a short position of Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSJA and Natixis ETF.
Diversification Opportunities for DSJA and Natixis ETF
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DSJA and Natixis is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding DSJA 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 DSJA 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 DSJA 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 DSJA i.e., DSJA and Natixis ETF go up and down completely randomly.
Pair Corralation between DSJA and Natixis ETF
Given the investment horizon of 90 days DSJA is expected to generate 1.06 times more return on investment than Natixis ETF. However, DSJA is 1.06 times more volatile than Natixis ETF Trust. It trades about 0.14 of its potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.1 per unit of risk. If you would invest 2,468 in DSJA on August 30, 2024 and sell it today you would earn a total of 397.00 from holding DSJA or generate 16.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 64.05% |
| Values | Daily Returns |
DSJA vs. Natixis ETF Trust
Performance |
| Timeline |
| DSJA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Natixis ETF Trust |
DSJA and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSJA and Natixis ETF
The main advantage of trading using opposite DSJA and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSJA 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.| DSJA vs. ProShares VIX Mid Term | DSJA vs. ProShares VIX Short Term | DSJA vs. iPath Series B | DSJA vs. ProShares Short Russell2000 |
| Natixis ETF vs. Freedom Day Dividend | Natixis ETF vs. Franklin Templeton ETF | Natixis ETF vs. iShares MSCI China | Natixis ETF vs. Tidal Trust II |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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