Correlation Between Natixis Oakmark and Gateway Equity
Can any of the company-specific risk be diversified away by investing in both Natixis Oakmark and Gateway Equity 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 Gateway Equity 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 Gateway Equity Call, you can compare the effects of market volatilities on Natixis Oakmark and Gateway Equity 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 Gateway Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Oakmark and Gateway Equity.
Diversification Opportunities for Natixis Oakmark and Gateway Equity
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Natixis and Gateway is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Oakmark Intl and Gateway Equity Call in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Equity Call 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 Gateway Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Equity Call has no effect on the direction of Natixis Oakmark i.e., Natixis Oakmark and Gateway Equity go up and down completely randomly.
Pair Corralation between Natixis Oakmark and Gateway Equity
Assuming the 90 days horizon Natixis Oakmark is expected to generate 2.47 times less return on investment than Gateway Equity. In addition to that, Natixis Oakmark is 1.88 times more volatile than Gateway Equity Call. It trades about 0.03 of its total potential returns per unit of risk. Gateway Equity Call is currently generating about 0.13 per unit of volatility. If you would invest 1,450 in Gateway Equity Call on August 30, 2024 and sell it today you would earn a total of 560.00 from holding Gateway Equity Call or generate 38.62% 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 Intl vs. Gateway Equity Call
Performance |
| Timeline |
| Natixis Oakmark Intl |
| Gateway Equity Call |
Natixis Oakmark and Gateway Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Oakmark and Gateway Equity
The main advantage of trading using opposite Natixis Oakmark and Gateway Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Oakmark position performs unexpectedly, Gateway Equity 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 Gateway Equity will offset losses from the drop in Gateway Equity's long position.| Natixis Oakmark vs. Calvert Short Duration | Natixis Oakmark vs. Aqr Long Short Equity | Natixis Oakmark vs. Ab Select Longshort | Natixis Oakmark vs. Federated Short Intermediate Duration |
| Gateway Equity vs. Champlain Small | Gateway Equity vs. Touchstone Small Cap | Gateway Equity vs. Tax Managed Mid Small | Gateway Equity vs. Kinetics Small Cap |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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