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 Intl and Natixis Oakmark, 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
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Natixis and Natixis is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Oakmark Intl and Natixis Oakmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark 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 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 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 Intl is expected to under-perform the Natixis Oakmark. But the mutual fund apears to be less risky and, when comparing its historical volatility, Natixis Oakmark Intl is 1.02 times less risky than Natixis Oakmark. The mutual fund trades about -0.24 of its potential returns per unit of risk. The Natixis Oakmark is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,388 in Natixis Oakmark on August 26, 2024 and sell it today you would earn a total of 174.00 from holding Natixis Oakmark or generate 5.14% 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. Natixis Oakmark
Performance |
| Timeline |
| Natixis Oakmark Intl |
| Natixis Oakmark |
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. Dreyfus Technology Growth | Natixis Oakmark vs. Icon Information Technology | Natixis Oakmark vs. Vanguard Information Technology | Natixis Oakmark vs. Janus Global Technology |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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