Correlation Between Natixis ETF and Global X
Can any of the company-specific risk be diversified away by investing in both Natixis ETF and Global X 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 Global X 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 Global X SP, you can compare the effects of market volatilities on Natixis ETF and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis ETF and Global X.
Diversification Opportunities for Natixis ETF and Global X
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Natixis and Global is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Natixis ETF Trust and Global X SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X SP 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X SP has no effect on the direction of Natixis ETF i.e., Natixis ETF and Global X go up and down completely randomly.
Pair Corralation between Natixis ETF and Global X
Considering the 90-day investment horizon Natixis ETF Trust is expected to generate 1.14 times more return on investment than Global X. However, Natixis ETF is 1.14 times more volatile than Global X SP. It trades about 0.17 of its potential returns per unit of risk. Global X SP is currently generating about 0.19 per unit of risk. If you would invest 5,356 in Natixis ETF Trust on August 26, 2024 and sell it today you would earn a total of 152.00 from holding Natixis ETF Trust or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natixis ETF Trust vs. Global X SP
Performance |
| Timeline |
| Natixis ETF Trust |
| Global X SP |
Natixis ETF and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis ETF and Global X
The main advantage of trading using opposite Natixis ETF and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis ETF position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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