Correlation Between EQOP and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both EQOP 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 EQOP and Natixis ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EQOP and Natixis ETF Trust, you can compare the effects of market volatilities on EQOP 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 EQOP with a short position of Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of EQOP and Natixis ETF.
Diversification Opportunities for EQOP and Natixis ETF
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EQOP and Natixis is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding EQOP 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 EQOP 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 EQOP 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 EQOP i.e., EQOP and Natixis ETF go up and down completely randomly.
Pair Corralation between EQOP and Natixis ETF
If you would invest 3,443 in Natixis ETF Trust on August 30, 2024 and sell it today you would earn a total of 52.00 from holding Natixis ETF Trust or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
EQOP vs. Natixis ETF Trust
Performance |
| Timeline |
| EQOP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Natixis ETF Trust |
EQOP and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EQOP and Natixis ETF
The main advantage of trading using opposite EQOP and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EQOP 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.| EQOP vs. JPMorgan BetaBuilders International | EQOP vs. JPMorgan Core Plus | EQOP vs. JPMorgan BetaBuilders Canada | EQOP vs. JPMorgan Emerging Markets |
| Natixis ETF vs. JPMorgan BetaBuilders International | Natixis ETF vs. JPMorgan Core Plus | Natixis ETF vs. JPMorgan BetaBuilders Canada | Natixis ETF vs. JPMorgan Emerging Markets |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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