Correlation Between Fisher Small and Natixis Sustainable
Can any of the company-specific risk be diversified away by investing in both Fisher Small and Natixis Sustainable 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 Fisher Small and Natixis Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fisher Small Cap and Natixis Sustainable Future, you can compare the effects of market volatilities on Fisher Small and Natixis Sustainable 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 Fisher Small with a short position of Natixis Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Small and Natixis Sustainable.
Diversification Opportunities for Fisher Small and Natixis Sustainable
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fisher and Natixis is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Small Cap and Natixis Sustainable Future in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Sustainable and Fisher Small 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 Fisher Small Cap are associated (or correlated) with Natixis Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Sustainable has no effect on the direction of Fisher Small i.e., Fisher Small and Natixis Sustainable go up and down completely randomly.
Pair Corralation between Fisher Small and Natixis Sustainable
Assuming the 90 days horizon Fisher Small Cap is expected to generate 3.11 times more return on investment than Natixis Sustainable. However, Fisher Small is 3.11 times more volatile than Natixis Sustainable Future. It trades about 0.32 of its potential returns per unit of risk. Natixis Sustainable Future is currently generating about 0.37 per unit of risk. If you would invest 1,207 in Fisher Small Cap on September 1, 2024 and sell it today you would earn a total of 142.00 from holding Fisher Small Cap or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fisher Small Cap vs. Natixis Sustainable Future
Performance |
| Timeline |
| Fisher Small Cap |
| Natixis Sustainable |
Fisher Small and Natixis Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Small and Natixis Sustainable
The main advantage of trading using opposite Fisher Small and Natixis Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Small position performs unexpectedly, Natixis Sustainable 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 Sustainable will offset losses from the drop in Natixis Sustainable's long position.| Fisher Small vs. Fisher Large Cap | Fisher Small vs. Fisher All Foreign | Fisher Small vs. Tactical Multi Purpose Fund | Fisher Small vs. Fisher Stock |
| Natixis Sustainable vs. Small Midcap Dividend Income | Natixis Sustainable vs. Legg Mason Partners | Natixis Sustainable vs. Us Small Cap | Natixis Sustainable vs. Fisher Small Cap |
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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