Correlation Between Natixis Oakmark and Mirova Global
Can any of the company-specific risk be diversified away by investing in both Natixis Oakmark and Mirova Global 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 Mirova Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natixis Oakmark Intl and Mirova Global Sustainable, you can compare the effects of market volatilities on Natixis Oakmark and Mirova Global 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 Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Oakmark and Mirova Global.
Diversification Opportunities for Natixis Oakmark and Mirova Global
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Natixis and Mirova is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Oakmark Intl and Mirova Global Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirova Global Sustainable 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 Intl are associated (or correlated) with Mirova Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirova Global Sustainable has no effect on the direction of Natixis Oakmark i.e., Natixis Oakmark and Mirova Global go up and down completely randomly.
Pair Corralation between Natixis Oakmark and Mirova Global
Assuming the 90 days horizon Natixis Oakmark is expected to generate 5.39 times less return on investment than Mirova Global. In addition to that, Natixis Oakmark is 1.18 times more volatile than Mirova Global Sustainable. It trades about 0.01 of its total potential returns per unit of risk. Mirova Global Sustainable is currently generating about 0.09 per unit of volatility. If you would invest 1,681 in Mirova Global Sustainable on September 12, 2024 and sell it today you would earn a total of 445.00 from holding Mirova Global Sustainable or generate 26.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natixis Oakmark Intl vs. Mirova Global Sustainable
Performance |
| Timeline |
| Natixis Oakmark Intl |
| Mirova Global Sustainable |
Natixis Oakmark and Mirova Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Oakmark and Mirova Global
The main advantage of trading using opposite Natixis Oakmark and Mirova Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Oakmark position performs unexpectedly, Mirova Global 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 Mirova Global will offset losses from the drop in Mirova Global's long position.| Natixis Oakmark vs. Natixis Oakmark | Natixis Oakmark vs. Natixis Oakmark International | Natixis Oakmark vs. Natixis Oakmark International | Natixis Oakmark vs. Natixis Oakmark International |
| Mirova Global vs. American Funds New | Mirova Global vs. American Funds New | Mirova Global vs. New Perspective Fund | Mirova Global vs. New Perspective Fund |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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