Correlation Between Natixis ETF and ETF Series
Can any of the company-specific risk be diversified away by investing in both Natixis ETF and ETF Series 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 ETF Series 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 ETF Series Solutions, you can compare the effects of market volatilities on Natixis ETF and ETF Series 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 ETF Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis ETF and ETF Series.
Diversification Opportunities for Natixis ETF and ETF Series
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Natixis and ETF is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Natixis ETF Trust and ETF Series Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETF Series Solutions 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 ETF Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETF Series Solutions has no effect on the direction of Natixis ETF i.e., Natixis ETF and ETF Series go up and down completely randomly.
Pair Corralation between Natixis ETF and ETF Series
Given the investment horizon of 90 days Natixis ETF is expected to generate 1.25 times less return on investment than ETF Series. But when comparing it to its historical volatility, Natixis ETF Trust is 1.17 times less risky than ETF Series. It trades about 0.29 of its potential returns per unit of risk. ETF Series Solutions is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 3,482 in ETF Series Solutions on September 1, 2024 and sell it today you would earn a total of 320.00 from holding ETF Series Solutions or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natixis ETF Trust vs. ETF Series Solutions
Performance |
| Timeline |
| Natixis ETF Trust |
| ETF Series Solutions |
Natixis ETF and ETF Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis ETF and ETF Series
The main advantage of trading using opposite Natixis ETF and ETF Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis ETF position performs unexpectedly, ETF Series 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 ETF Series will offset losses from the drop in ETF Series' long position.| Natixis ETF vs. Vanguard Growth Index | Natixis ETF vs. iShares Russell 1000 | Natixis ETF vs. iShares SP 500 | Natixis ETF vs. iShares Core SP |
| ETF Series vs. Distillate Fundamental Stability | ETF Series vs. ETF Series Solutions | ETF Series vs. Fairlead Tactical Sector | ETF Series vs. VanEck ETF Trust |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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