Correlation Between Natixis Sustainable and Ab Global
Can any of the company-specific risk be diversified away by investing in both Natixis Sustainable and Ab Global 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 Ab Global 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 Ab Global Bond, you can compare the effects of market volatilities on Natixis Sustainable and Ab Global 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 Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Sustainable and Ab Global.
Diversification Opportunities for Natixis Sustainable and Ab Global
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Natixis and ANAGX is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Sustainable Future and Ab Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Bond 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 Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Bond has no effect on the direction of Natixis Sustainable i.e., Natixis Sustainable and Ab Global go up and down completely randomly.
Pair Corralation between Natixis Sustainable and Ab Global
Assuming the 90 days horizon Natixis Sustainable Future is expected to generate 1.83 times more return on investment than Ab Global. However, Natixis Sustainable is 1.83 times more volatile than Ab Global Bond. It trades about 0.39 of its potential returns per unit of risk. Ab Global Bond is currently generating about 0.23 per unit of risk. If you would invest 940.00 in Natixis Sustainable Future on September 5, 2024 and sell it today you would earn a total of 29.00 from holding Natixis Sustainable Future or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Natixis Sustainable Future vs. Ab Global Bond
Performance |
| Timeline |
| Natixis Sustainable |
| Ab Global Bond |
Natixis Sustainable and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Sustainable and Ab Global
The main advantage of trading using opposite Natixis Sustainable and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Sustainable position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Natixis Sustainable vs. Ab Global Bond | Natixis Sustainable vs. Morningstar Global Income | Natixis Sustainable vs. Alliancebernstein Global High | Natixis Sustainable vs. Ab Global Real |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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