Correlation Between Aew Real and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Aew Real 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 Aew Real and Natixis Oakmark 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 Oakmark Fund, you can compare the effects of market volatilities on Aew Real 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 Aew Real with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aew Real and Natixis Oakmark.
Diversification Opportunities for Aew Real and Natixis Oakmark
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aew and Natixis is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aew Real Estate and Natixis Oakmark Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark 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 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 Aew Real i.e., Aew Real and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Aew Real and Natixis Oakmark
Assuming the 90 days horizon Aew Real is expected to generate 1.39 times less return on investment than Natixis Oakmark. But when comparing it to its historical volatility, Aew Real Estate is 1.08 times less risky than Natixis Oakmark. It trades about 0.04 of its potential returns per unit of risk. Natixis Oakmark Fund is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,544 in Natixis Oakmark Fund on September 3, 2024 and sell it today you would earn a total of 779.00 from holding Natixis Oakmark Fund or generate 30.62% 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 Oakmark Fund
Performance |
| Timeline |
| Aew Real Estate |
| Natixis Oakmark |
Aew Real and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aew Real and Natixis Oakmark
The main advantage of trading using opposite Aew Real and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aew Real 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.| Aew Real vs. Limited Term Tax | Aew Real vs. California High Yield Municipal | Aew Real vs. Federated Pennsylvania Municipal | Aew Real vs. Ab Impact Municipal |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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