Correlation Between Natixis ETF and AdvisorShares STAR
Can any of the company-specific risk be diversified away by investing in both Natixis ETF and AdvisorShares STAR 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 Natixis ETF and AdvisorShares STAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natixis ETF Trust and AdvisorShares STAR Global, you can compare the effects of market volatilities on Natixis ETF and AdvisorShares STAR 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 Natixis ETF with a short position of AdvisorShares STAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis ETF and AdvisorShares STAR.
Diversification Opportunities for Natixis ETF and AdvisorShares STAR
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Natixis and AdvisorShares is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Natixis ETF Trust and AdvisorShares STAR Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares STAR Global and Natixis ETF 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 Natixis ETF Trust are associated (or correlated) with AdvisorShares STAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares STAR Global has no effect on the direction of Natixis ETF i.e., Natixis ETF and AdvisorShares STAR go up and down completely randomly.
Pair Corralation between Natixis ETF and AdvisorShares STAR
Considering the 90-day investment horizon Natixis ETF Trust is expected to generate 1.07 times more return on investment than AdvisorShares STAR. However, Natixis ETF is 1.07 times more volatile than AdvisorShares STAR Global. It trades about 0.1 of its potential returns per unit of risk. AdvisorShares STAR Global is currently generating about 0.09 per unit of risk. If you would invest 4,718 in Natixis ETF Trust on August 30, 2024 and sell it today you would earn a total of 813.00 from holding Natixis ETF Trust or generate 17.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 48.89% |
| Values | Daily Returns |
Natixis ETF Trust vs. AdvisorShares STAR Global
Performance |
| Timeline |
| Natixis ETF Trust |
| AdvisorShares STAR Global |
Natixis ETF and AdvisorShares STAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis ETF and AdvisorShares STAR
The main advantage of trading using opposite Natixis ETF and AdvisorShares STAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis ETF position performs unexpectedly, AdvisorShares STAR 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 AdvisorShares STAR will offset losses from the drop in AdvisorShares STAR's long position.| Natixis ETF vs. Freedom Day Dividend | Natixis ETF vs. Franklin Templeton ETF | Natixis ETF vs. iShares MSCI China | Natixis ETF vs. Tidal Trust II |
| AdvisorShares STAR vs. AdvisorShares Dorsey Wright | AdvisorShares STAR vs. Vident Core Bond | AdvisorShares STAR vs. WBI BullBear Quality | AdvisorShares STAR vs. WBI BullBear Value |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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