Correlation Between FT Vest and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both FT Vest 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 FT Vest and Natixis ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FT Vest Dow and Natixis ETF Trust, you can compare the effects of market volatilities on FT Vest 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 FT Vest with a short position of Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of FT Vest and Natixis ETF.
Diversification Opportunities for FT Vest and Natixis ETF
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FDND and Natixis is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding FT Vest Dow 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 FT Vest 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 FT Vest Dow 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 FT Vest i.e., FT Vest and Natixis ETF go up and down completely randomly.
Pair Corralation between FT Vest and Natixis ETF
Given the investment horizon of 90 days FT Vest Dow is expected to generate 1.49 times more return on investment than Natixis ETF. However, FT Vest is 1.49 times more volatile than Natixis ETF Trust. It trades about 0.38 of its potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.17 per unit of risk. If you would invest 2,024 in FT Vest Dow on August 26, 2024 and sell it today you would earn a total of 198.00 from holding FT Vest Dow or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FT Vest Dow vs. Natixis ETF Trust
Performance |
| Timeline |
| FT Vest Dow |
| Natixis ETF Trust |
FT Vest and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FT Vest and Natixis ETF
The main advantage of trading using opposite FT Vest and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FT Vest 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.The idea behind FT Vest Dow and Natixis ETF Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Natixis ETF vs. Global X Dow | Natixis ETF vs. AdvisorShares STAR Global | Natixis ETF vs. Global X Funds | Natixis ETF vs. FT Vest Dow |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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