Correlation Between Natixis Oakmark and Vaughan Nelson
Can any of the company-specific risk be diversified away by investing in both Natixis Oakmark and Vaughan Nelson 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 Vaughan Nelson 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 Vaughan Nelson Value, you can compare the effects of market volatilities on Natixis Oakmark and Vaughan Nelson 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 Vaughan Nelson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Oakmark and Vaughan Nelson.
Diversification Opportunities for Natixis Oakmark and Vaughan Nelson
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NATIXIS and Vaughan is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Oakmark International and Vaughan Nelson Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaughan Nelson Value 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 Vaughan Nelson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaughan Nelson Value has no effect on the direction of Natixis Oakmark i.e., Natixis Oakmark and Vaughan Nelson go up and down completely randomly.
Pair Corralation between Natixis Oakmark and Vaughan Nelson
Assuming the 90 days horizon Natixis Oakmark International is expected to under-perform the Vaughan Nelson. But the mutual fund apears to be less risky and, when comparing its historical volatility, Natixis Oakmark International is 1.11 times less risky than Vaughan Nelson. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Vaughan Nelson Value is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 2,653 in Vaughan Nelson Value on September 1, 2024 and sell it today you would earn a total of 265.00 from holding Vaughan Nelson Value or generate 9.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natixis Oakmark International vs. Vaughan Nelson Value
Performance |
| Timeline |
| Natixis Oakmark Inte |
| Vaughan Nelson Value |
Natixis Oakmark and Vaughan Nelson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Oakmark and Vaughan Nelson
The main advantage of trading using opposite Natixis Oakmark and Vaughan Nelson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Oakmark position performs unexpectedly, Vaughan Nelson 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 Vaughan Nelson will offset losses from the drop in Vaughan Nelson's long position.| Natixis Oakmark vs. Asg Managed Futures | Natixis Oakmark vs. Asg Managed Futures | Natixis Oakmark vs. Natixis Oakmark | Natixis Oakmark vs. Natixis Oakmark International |
| Vaughan Nelson vs. Asg Managed Futures | Vaughan Nelson vs. Asg Managed Futures | Vaughan Nelson vs. Natixis Oakmark | Vaughan Nelson vs. Natixis Oakmark International |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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