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 Intl, 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
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gateway and Natixis is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Gateway Equity Call and Natixis Oakmark Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark Intl 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 Intl 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 0.46 times more return on investment than Natixis Oakmark. However, Gateway Equity Call is 2.15 times less risky than Natixis Oakmark. It trades about 0.19 of its potential returns per unit of risk. Natixis Oakmark Intl is currently generating about -0.18 per unit of risk. If you would invest 1,966 in Gateway Equity Call on August 30, 2024 and sell it today you would earn a total of 45.00 from holding Gateway Equity Call or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gateway Equity Call vs. Natixis Oakmark Intl
Performance |
| Timeline |
| Gateway Equity Call |
| Natixis Oakmark Intl |
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. Vanguard Equity Income | Gateway Equity vs. Qs Large Cap | Gateway Equity vs. Touchstone Large Cap | Gateway Equity vs. Americafirst Large Cap |
| Natixis Oakmark vs. Calvert Short Duration | Natixis Oakmark vs. Aqr Long Short Equity | Natixis Oakmark vs. Ab Select Longshort | Natixis Oakmark vs. Federated Short Intermediate Duration |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |