Correlation Between Gateway Equity and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Gateway Equity 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 Gateway Equity and Natixis Oakmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gateway Equity Call and Natixis Oakmark Fund, you can compare the effects of market volatilities on Gateway Equity 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 Gateway Equity with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gateway Equity and Natixis Oakmark.
Diversification Opportunities for Gateway Equity and Natixis Oakmark
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gateway and Natixis is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Gateway Equity Call and Natixis Oakmark Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark and Gateway Equity 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 Gateway Equity Call 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 Gateway Equity i.e., Gateway Equity and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Gateway Equity and Natixis Oakmark
Assuming the 90 days horizon Gateway Equity Call is expected to generate 0.5 times more return on investment than Natixis Oakmark. However, Gateway Equity Call is 2.01 times less risky than Natixis Oakmark. It trades about 0.12 of its potential returns per unit of risk. Natixis Oakmark Fund is currently generating about 0.06 per unit of risk. If you would invest 1,480 in Gateway Equity Call on September 3, 2024 and sell it today you would earn a total of 539.00 from holding Gateway Equity Call or generate 36.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gateway Equity Call vs. Natixis Oakmark Fund
Performance |
| Timeline |
| Gateway Equity Call |
| Natixis Oakmark |
Gateway Equity and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gateway Equity and Natixis Oakmark
The main advantage of trading using opposite Gateway Equity and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gateway Equity 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.| Gateway Equity vs. Jpmorgan Equity Income | Gateway Equity vs. Jpmorgan Hedged Equity | Gateway Equity vs. Calamos Market Neutral | Gateway Equity vs. Jpmorgan Emerging Markets |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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