Correlation Between GM and Natixis Investment
Can any of the company-specific risk be diversified away by investing in both GM and Natixis Investment 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 GM and Natixis Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Natixis Investment Managers, you can compare the effects of market volatilities on GM and Natixis Investment 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 GM with a short position of Natixis Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Natixis Investment.
Diversification Opportunities for GM and Natixis Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Natixis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Natixis Investment Managers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Investment and GM 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 General Motors are associated (or correlated) with Natixis Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Investment has no effect on the direction of GM i.e., GM and Natixis Investment go up and down completely randomly.
Pair Corralation between GM and Natixis Investment
If you would invest (100.00) in Natixis Investment Managers on November 28, 2024 and sell it today you would earn a total of 100.00 from holding Natixis Investment Managers or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. Natixis Investment Managers
Performance |
| Timeline |
| General Motors |
| Natixis Investment |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
GM and Natixis Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Natixis Investment
The main advantage of trading using opposite GM and Natixis Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Natixis Investment 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 Investment will offset losses from the drop in Natixis Investment's long position.The idea behind General Motors and Natixis Investment Managers 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 Investment vs. Natixis ETF Trust | Natixis Investment vs. T Rowe Price | Natixis Investment vs. Innovator SP 500 |
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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