Correlation Between Natixis Us and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Natixis Us and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Natixis Us and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Us and Dow Jones.
Diversification Opportunities for Natixis Us and Dow Jones
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Natixis and Dow is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Equity Opportunities and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Natixis Us i.e., Natixis Us and Dow Jones go up and down completely randomly.
Pair Corralation between Natixis Us and Dow Jones
Assuming the 90 days horizon Natixis Equity Opportunities is expected to generate 1.1 times more return on investment than Dow Jones. However, Natixis Us is 1.1 times more volatile than Dow Jones Industrial. It trades about 0.3 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.26 per unit of risk. If you would invest 4,410 in Natixis Equity Opportunities on August 28, 2024 and sell it today you would earn a total of 312.00 from holding Natixis Equity Opportunities or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natixis Equity Opportunities vs. Dow Jones Industrial
Performance |
| Timeline |
Natixis Us and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Natixis Equity Opportunities
Pair trading matchups for Natixis Us
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Natixis Us and Dow Jones
The main advantage of trading using opposite Natixis Us and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Us position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Natixis Us vs. Natixis Oakmark Fund | Natixis Us vs. Vaughan Nelson Small | Natixis Us vs. Loomis Sayles Growth | Natixis Us vs. Loomis Sayles Limited |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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