Correlation Between Natixis Oakmark and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Natixis Oakmark and Natixis Oakmark 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 Natixis Oakmark 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 Natixis Oakmark International, you can compare the effects of market volatilities on Natixis Oakmark and Natixis Oakmark 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 Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Oakmark and Natixis Oakmark.
Diversification Opportunities for Natixis Oakmark and Natixis Oakmark
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Natixis and Natixis is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Oakmark International and Natixis Oakmark International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark Inte 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 Natixis Oakmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Oakmark Inte has no effect on the direction of Natixis Oakmark i.e., Natixis Oakmark and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Natixis Oakmark and Natixis Oakmark
Assuming the 90 days horizon Natixis Oakmark is expected to generate 1.13 times less return on investment than Natixis Oakmark. In addition to that, Natixis Oakmark is 1.0 times more volatile than Natixis Oakmark International. It trades about 0.02 of its total potential returns per unit of risk. Natixis Oakmark International is currently generating about 0.03 per unit of volatility. If you would invest 1,251 in Natixis Oakmark International on August 30, 2024 and sell it today you would earn a total of 140.00 from holding Natixis Oakmark International or generate 11.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natixis Oakmark International vs. Natixis Oakmark International
Performance |
| Timeline |
| Natixis Oakmark Inte |
| Natixis Oakmark Inte |
Natixis Oakmark and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Oakmark and Natixis Oakmark
The main advantage of trading using opposite Natixis Oakmark and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Oakmark position performs unexpectedly, Natixis Oakmark 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 Natixis Oakmark will offset losses from the drop in Natixis Oakmark's long position.| Natixis Oakmark vs. HUMANA INC | Natixis Oakmark vs. Aquagold International | Natixis Oakmark vs. Barloworld Ltd ADR | Natixis Oakmark vs. Morningstar Unconstrained Allocation |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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