Correlation Between Aew Real and Natixis Us
Can any of the company-specific risk be diversified away by investing in both Aew Real and Natixis Us 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 Aew Real and Natixis Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aew Real Estate and Natixis Equity Opportunities, you can compare the effects of market volatilities on Aew Real and Natixis Us 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 Aew Real with a short position of Natixis Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aew Real and Natixis Us.
Diversification Opportunities for Aew Real and Natixis Us
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aew and Natixis is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Aew Real Estate and Natixis Equity Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Equity Oppor and Aew Real 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 Aew Real Estate are associated (or correlated) with Natixis Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Equity Oppor has no effect on the direction of Aew Real i.e., Aew Real and Natixis Us go up and down completely randomly.
Pair Corralation between Aew Real and Natixis Us
Assuming the 90 days horizon Aew Real is expected to generate 1.53 times less return on investment than Natixis Us. But when comparing it to its historical volatility, Aew Real Estate is 1.17 times less risky than Natixis Us. It trades about 0.12 of its potential returns per unit of risk. Natixis Equity Opportunities is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,947 in Natixis Equity Opportunities on September 2, 2024 and sell it today you would earn a total of 788.00 from holding Natixis Equity Opportunities or generate 19.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aew Real Estate vs. Natixis Equity Opportunities
Performance |
| Timeline |
| Aew Real Estate |
| Natixis Equity Oppor |
Aew Real and Natixis Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aew Real and Natixis Us
The main advantage of trading using opposite Aew Real and Natixis Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aew Real position performs unexpectedly, Natixis Us 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 Us will offset losses from the drop in Natixis Us' long position.| Aew Real vs. Dunham High Yield | Aew Real vs. Gmo High Yield | Aew Real vs. Valic Company I | Aew Real vs. Legg Mason Partners |
| Natixis Us vs. Natixis Oakmark Fund | Natixis Us vs. Vaughan Nelson Small | Natixis Us vs. Loomis Sayles Growth | Natixis Us vs. Loomis Sayles Limited |
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 CEOs Directory module to screen CEOs from public companies around the world.
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