Correlation Between Blrc Sgy and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Blrc Sgy 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 Blrc Sgy and Natixis Oakmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blrc Sgy Mnp and Natixis Oakmark, you can compare the effects of market volatilities on Blrc Sgy 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 Blrc Sgy with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blrc Sgy and Natixis Oakmark.
Diversification Opportunities for Blrc Sgy and Natixis Oakmark
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blrc and Natixis is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Blrc Sgy Mnp and Natixis Oakmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark and Blrc Sgy 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 Blrc Sgy Mnp 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 Blrc Sgy i.e., Blrc Sgy and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Blrc Sgy and Natixis Oakmark
Assuming the 90 days horizon Blrc Sgy is expected to generate 3.72 times less return on investment than Natixis Oakmark. But when comparing it to its historical volatility, Blrc Sgy Mnp is 3.07 times less risky than Natixis Oakmark. It trades about 0.25 of its potential returns per unit of risk. Natixis Oakmark is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 3,384 in Natixis Oakmark on September 1, 2024 and sell it today you would earn a total of 242.00 from holding Natixis Oakmark or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Blrc Sgy Mnp vs. Natixis Oakmark
Performance |
| Timeline |
| Blrc Sgy Mnp |
| Natixis Oakmark |
Blrc Sgy and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blrc Sgy and Natixis Oakmark
The main advantage of trading using opposite Blrc Sgy and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blrc Sgy 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.| Blrc Sgy vs. Blackrock California Municipal | Blrc Sgy vs. Blackrock Balanced Capital | Blrc Sgy vs. Blackrock Eurofund Class | Blrc Sgy vs. Blackrock Funds |
| Natixis Oakmark vs. Asg Managed Futures | Natixis Oakmark vs. Asg Managed Futures | Natixis Oakmark vs. Natixis Oakmark International | Natixis Oakmark vs. Natixis Oakmark International |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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