Correlation Between Natixis ETF and Vanguard Growth
Can any of the company-specific risk be diversified away by investing in both Natixis ETF and Vanguard Growth 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 Vanguard Growth 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 Vanguard Growth Index, you can compare the effects of market volatilities on Natixis ETF and Vanguard Growth 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 Vanguard Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis ETF and Vanguard Growth.
Diversification Opportunities for Natixis ETF and Vanguard Growth
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Natixis and Vanguard is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Natixis ETF Trust and Vanguard Growth Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Growth Index 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 Vanguard Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Growth Index has no effect on the direction of Natixis ETF i.e., Natixis ETF and Vanguard Growth go up and down completely randomly.
Pair Corralation between Natixis ETF and Vanguard Growth
Given the investment horizon of 90 days Natixis ETF Trust is expected to generate 1.2 times more return on investment than Vanguard Growth. However, Natixis ETF is 1.2 times more volatile than Vanguard Growth Index. It trades about 0.29 of its potential returns per unit of risk. Vanguard Growth Index is currently generating about 0.35 per unit of risk. If you would invest 3,587 in Natixis ETF Trust on September 1, 2024 and sell it today you would earn a total of 262.00 from holding Natixis ETF Trust or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Natixis ETF Trust vs. Vanguard Growth Index
Performance |
| Timeline |
| Natixis ETF Trust |
| Vanguard Growth Index |
Natixis ETF and Vanguard Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis ETF and Vanguard Growth
The main advantage of trading using opposite Natixis ETF and Vanguard Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis ETF position performs unexpectedly, Vanguard Growth 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 Vanguard Growth will offset losses from the drop in Vanguard Growth's 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 |
| Vanguard Growth vs. Vanguard Value Index | Vanguard Growth vs. Vanguard Information Technology | Vanguard Growth vs. Vanguard Small Cap Growth | Vanguard Growth vs. Vanguard Dividend Appreciation |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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