Correlation Between Blrc Sgy and Natixis Sustainable
Can any of the company-specific risk be diversified away by investing in both Blrc Sgy 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 Blrc Sgy and Natixis Sustainable 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 Sustainable Future, you can compare the effects of market volatilities on Blrc Sgy 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 Blrc Sgy with a short position of Natixis Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blrc Sgy and Natixis Sustainable.
Diversification Opportunities for Blrc Sgy and Natixis Sustainable
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blrc and Natixis is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Blrc Sgy Mnp and Natixis Sustainable Future in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Sustainable 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 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 Blrc Sgy i.e., Blrc Sgy and Natixis Sustainable go up and down completely randomly.
Pair Corralation between Blrc Sgy and Natixis Sustainable
Assuming the 90 days horizon Blrc Sgy is expected to generate 8.73 times less return on investment than Natixis Sustainable. But when comparing it to its historical volatility, Blrc Sgy Mnp is 1.73 times less risky than Natixis Sustainable. It trades about 0.03 of its potential returns per unit of risk. Natixis Sustainable Future is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,232 in Natixis Sustainable Future on September 3, 2024 and sell it today you would earn a total of 64.00 from holding Natixis Sustainable Future or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blrc Sgy Mnp vs. Natixis Sustainable Future
Performance |
| Timeline |
| Blrc Sgy Mnp |
| Natixis Sustainable |
Blrc Sgy and Natixis Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blrc Sgy and Natixis Sustainable
The main advantage of trading using opposite Blrc Sgy and Natixis Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blrc Sgy 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.| Blrc Sgy vs. Technology Ultrasector Profund | Blrc Sgy vs. Biotechnology Ultrasector Profund | Blrc Sgy vs. Blackrock Science Technology | Blrc Sgy vs. Allianzgi Technology Fund |
| Natixis Sustainable vs. Ab Bond Inflation | Natixis Sustainable vs. Lind Capital Partners | Natixis Sustainable vs. Blrc Sgy Mnp | Natixis Sustainable vs. Maryland Tax Free Bond |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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