Correlation Between Knife River and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both Knife River and Natixis ETF 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 Knife River and Natixis ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knife River and Natixis ETF Trust, you can compare the effects of market volatilities on Knife River and Natixis ETF 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 Knife River with a short position of Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knife River and Natixis ETF.
Diversification Opportunities for Knife River and Natixis ETF
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Knife and Natixis is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Knife River and Natixis ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis ETF Trust and Knife River 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 Knife River are associated (or correlated) with Natixis ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis ETF Trust has no effect on the direction of Knife River i.e., Knife River and Natixis ETF go up and down completely randomly.
Pair Corralation between Knife River and Natixis ETF
Considering the 90-day investment horizon Knife River is expected to generate 2.8 times more return on investment than Natixis ETF. However, Knife River is 2.8 times more volatile than Natixis ETF Trust. It trades about 0.1 of its potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.06 per unit of risk. If you would invest 9,641 in Knife River on August 30, 2024 and sell it today you would earn a total of 634.00 from holding Knife River or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knife River vs. Natixis ETF Trust
Performance |
| Timeline |
| Knife River |
| Natixis ETF Trust |
Knife River and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knife River and Natixis ETF
The main advantage of trading using opposite Knife River and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knife River position performs unexpectedly, Natixis ETF 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 ETF will offset losses from the drop in Natixis ETF's long position.| Knife River vs. Philip Morris International | Knife River vs. PepsiCo | Knife River vs. Compania Cervecerias Unidas | Knife River vs. The Cheesecake Factory |
| Natixis ETF vs. JPMorgan BetaBuilders International | Natixis ETF vs. JPMorgan Core Plus | Natixis ETF vs. JPMorgan BetaBuilders Canada | Natixis ETF vs. JPMorgan Emerging Markets |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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