Correlation Between Quantitative and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Quantitative 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 Quantitative and Natixis Oakmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quantitative U S and Natixis Oakmark, you can compare the effects of market volatilities on Quantitative 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 Quantitative with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantitative and Natixis Oakmark.
Diversification Opportunities for Quantitative and Natixis Oakmark
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Quantitative and Natixis is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Quantitative U S and Natixis Oakmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark and Quantitative 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 Quantitative U S 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 Quantitative i.e., Quantitative and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Quantitative and Natixis Oakmark
Assuming the 90 days horizon Quantitative is expected to generate 1.24 times less return on investment than Natixis Oakmark. But when comparing it to its historical volatility, Quantitative U S is 1.25 times less risky than Natixis Oakmark. It trades about 0.28 of its potential returns per unit of risk. Natixis Oakmark is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 3,395 in Natixis Oakmark on August 30, 2024 and sell it today you would earn a total of 225.00 from holding Natixis Oakmark or generate 6.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quantitative U S vs. Natixis Oakmark
Performance |
| Timeline |
| Quantitative U S |
| Natixis Oakmark |
Quantitative and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quantitative and Natixis Oakmark
The main advantage of trading using opposite Quantitative and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantitative 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.| Quantitative vs. Goldman Sachs Large | Quantitative vs. Vanguard Equity Income | Quantitative vs. Tax Managed Large Cap | Quantitative vs. T Rowe Price |
| Natixis Oakmark vs. T Rowe Price | Natixis Oakmark vs. Multisector Bond Sma | Natixis Oakmark vs. Blrc Sgy Mnp | 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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