Correlation Between Natixis Equity and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Natixis Equity and Loomis Sayles 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 Equity and Loomis Sayles 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 Loomis Sayles E, you can compare the effects of market volatilities on Natixis Equity and Loomis Sayles 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 Equity with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Equity and Loomis Sayles.
Diversification Opportunities for Natixis Equity and Loomis Sayles
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Natixis and Loomis is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Equity Opportunities and Loomis Sayles E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles E and Natixis Equity 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 Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles E has no effect on the direction of Natixis Equity i.e., Natixis Equity and Loomis Sayles go up and down completely randomly.
Pair Corralation between Natixis Equity and Loomis Sayles
Assuming the 90 days horizon Natixis Equity Opportunities is expected to generate 2.27 times more return on investment than Loomis Sayles. However, Natixis Equity is 2.27 times more volatile than Loomis Sayles E. It trades about 0.18 of its potential returns per unit of risk. Loomis Sayles E is currently generating about 0.27 per unit of risk. If you would invest 1,713 in Natixis Equity Opportunities on September 13, 2024 and sell it today you would earn a total of 37.00 from holding Natixis Equity Opportunities or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natixis Equity Opportunities vs. Loomis Sayles E
Performance |
| Timeline |
| Natixis Equity Oppor |
| Loomis Sayles E |
Natixis Equity and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Equity and Loomis Sayles
The main advantage of trading using opposite Natixis Equity and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Equity position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| Natixis Equity vs. Qs Global Equity | Natixis Equity vs. Franklin Mutual Global | Natixis Equity vs. Ab Global Risk | Natixis Equity vs. Alliancebernstein Global High |
| Loomis Sayles vs. Shelton Emerging Markets | Loomis Sayles vs. Investec Emerging Markets | Loomis Sayles vs. Nasdaq 100 2x Strategy | Loomis Sayles vs. Eagle Mlp Strategy |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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