Correlation Between Natixis Sustainable and Fidelity Freedom
Can any of the company-specific risk be diversified away by investing in both Natixis Sustainable and Fidelity Freedom 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 Sustainable and Fidelity Freedom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natixis Sustainable Future and Fidelity Freedom 2010, you can compare the effects of market volatilities on Natixis Sustainable and Fidelity Freedom 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 Sustainable with a short position of Fidelity Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Sustainable and Fidelity Freedom.
Diversification Opportunities for Natixis Sustainable and Fidelity Freedom
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Natixis and Fidelity is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Sustainable Future and Fidelity Freedom 2010 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom 2010 and Natixis Sustainable 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 Sustainable Future are associated (or correlated) with Fidelity Freedom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Freedom 2010 has no effect on the direction of Natixis Sustainable i.e., Natixis Sustainable and Fidelity Freedom go up and down completely randomly.
Pair Corralation between Natixis Sustainable and Fidelity Freedom
Assuming the 90 days horizon Natixis Sustainable Future is expected to generate 1.1 times more return on investment than Fidelity Freedom. However, Natixis Sustainable is 1.1 times more volatile than Fidelity Freedom 2010. It trades about 0.15 of its potential returns per unit of risk. Fidelity Freedom 2010 is currently generating about 0.12 per unit of risk. If you would invest 911.00 in Natixis Sustainable Future on September 3, 2024 and sell it today you would earn a total of 70.00 from holding Natixis Sustainable Future or generate 7.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natixis Sustainable Future vs. Fidelity Freedom 2010
Performance |
| Timeline |
| Natixis Sustainable |
| Fidelity Freedom 2010 |
Natixis Sustainable and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Sustainable and Fidelity Freedom
The main advantage of trading using opposite Natixis Sustainable and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Sustainable position performs unexpectedly, Fidelity Freedom 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 Fidelity Freedom will offset losses from the drop in Fidelity Freedom's long position.| Natixis Sustainable vs. Fidelity Freedom 2005 | Natixis Sustainable vs. Fidelity Freedom 2025 | Natixis Sustainable vs. Fidelity Freedom 2010 | Natixis Sustainable vs. Fidelity Freedom 2035 |
| Fidelity Freedom vs. Fidelity Freedom 2010 | Fidelity Freedom vs. T Rowe Price | Fidelity Freedom vs. T Rowe Price | Fidelity Freedom vs. American Funds 2010 |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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