Correlation Between Natixis Oakmark and Aew Real
Can any of the company-specific risk be diversified away by investing in both Natixis Oakmark and Aew Real 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 Oakmark and Aew Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natixis Oakmark International and Aew Real Estate, you can compare the effects of market volatilities on Natixis Oakmark and Aew Real 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 Oakmark with a short position of Aew Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Oakmark and Aew Real.
Diversification Opportunities for Natixis Oakmark and Aew Real
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NATIXIS and Aew is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Oakmark International and Aew Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aew Real Estate and Natixis Oakmark 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 Oakmark International are associated (or correlated) with Aew Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aew Real Estate has no effect on the direction of Natixis Oakmark i.e., Natixis Oakmark and Aew Real go up and down completely randomly.
Pair Corralation between Natixis Oakmark and Aew Real
Assuming the 90 days horizon Natixis Oakmark International is expected to under-perform the Aew Real. In addition to that, Natixis Oakmark is 1.31 times more volatile than Aew Real Estate. It trades about -0.15 of its total potential returns per unit of risk. Aew Real Estate is currently generating about 0.07 per unit of volatility. If you would invest 1,175 in Aew Real Estate on August 31, 2024 and sell it today you would earn a total of 16.00 from holding Aew Real Estate or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natixis Oakmark International vs. Aew Real Estate
Performance |
| Timeline |
| Natixis Oakmark Inte |
| Aew Real Estate |
Natixis Oakmark and Aew Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Oakmark and Aew Real
The main advantage of trading using opposite Natixis Oakmark and Aew Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Oakmark position performs unexpectedly, Aew Real 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 Aew Real will offset losses from the drop in Aew Real's long position.| Natixis Oakmark vs. Prudential Real Estate | Natixis Oakmark vs. Deutsche Real Estate | Natixis Oakmark vs. Deutsche Real Estate | Natixis Oakmark vs. Tiaa Cref Real Estate |
| Aew Real vs. Siit Ultra Short | Aew Real vs. Angel Oak Ultrashort | Aew Real vs. Touchstone Ultra Short | Aew Real vs. Chartwell Short Duration |
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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