Correlation Between Natixis Us and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Natixis Us and Fidelity Advisor 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 Us and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natixis Equity Opportunities and Fidelity Advisor Technology, you can compare the effects of market volatilities on Natixis Us and Fidelity Advisor 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 Us with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Us and Fidelity Advisor.
Diversification Opportunities for Natixis Us and Fidelity Advisor
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Natixis and Fidelity is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Equity Opportunities and Fidelity Advisor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Tec and Natixis Us 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 Equity Opportunities are associated (or correlated) with Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Tec has no effect on the direction of Natixis Us i.e., Natixis Us and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Natixis Us and Fidelity Advisor
Assuming the 90 days horizon Natixis Equity Opportunities is expected to generate 0.46 times more return on investment than Fidelity Advisor. However, Natixis Equity Opportunities is 2.17 times less risky than Fidelity Advisor. It trades about 0.26 of its potential returns per unit of risk. Fidelity Advisor Technology is currently generating about -0.05 per unit of risk. If you would invest 1,406 in Natixis Equity Opportunities on November 3, 2024 and sell it today you would earn a total of 73.00 from holding Natixis Equity Opportunities or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natixis Equity Opportunities vs. Fidelity Advisor Technology
Performance |
| Timeline |
| Natixis Equity Oppor |
| Fidelity Advisor Tec |
Natixis Us and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Us and Fidelity Advisor
The main advantage of trading using opposite Natixis Us and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Us position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor's long position.The idea behind Natixis Equity Opportunities and Fidelity Advisor Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Fidelity Advisor vs. Fidelity Advisor Health | Fidelity Advisor vs. Fidelity Advisor Financial | Fidelity Advisor vs. Fidelity Advisor Energy | Fidelity Advisor vs. Fidelity Advisor Semiconductors |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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