Correlation Between Natixis Sustainable and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Natixis Sustainable and Fidelity Advisor 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 Advisor 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 Advisor Technology, you can compare the effects of market volatilities on Natixis Sustainable and Fidelity Advisor 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 Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Sustainable and Fidelity Advisor.
Diversification Opportunities for Natixis Sustainable and Fidelity Advisor
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Natixis and Fidelity is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Sustainable Future and Fidelity Advisor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Tec 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 Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Tec has no effect on the direction of Natixis Sustainable i.e., Natixis Sustainable and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Natixis Sustainable and Fidelity Advisor
Assuming the 90 days horizon Natixis Sustainable is expected to generate 3.5 times less return on investment than Fidelity Advisor. But when comparing it to its historical volatility, Natixis Sustainable Future is 2.85 times less risky than Fidelity Advisor. It trades about 0.1 of its potential returns per unit of risk. Fidelity Advisor Technology is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 6,992 in Fidelity Advisor Technology on September 12, 2024 and sell it today you would earn a total of 8,031 from holding Fidelity Advisor Technology or generate 114.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natixis Sustainable Future vs. Fidelity Advisor Technology
Performance |
| Timeline |
| Natixis Sustainable |
| Fidelity Advisor Tec |
Natixis Sustainable and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Sustainable and Fidelity Advisor
The main advantage of trading using opposite Natixis Sustainable and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Sustainable position performs unexpectedly, Fidelity Advisor 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 Advisor will offset losses from the drop in Fidelity Advisor's long position.| Natixis Sustainable vs. Fidelity Advisor Technology | Natixis Sustainable vs. Hennessy Technology Fund | Natixis Sustainable vs. Goldman Sachs Technology | Natixis Sustainable vs. Invesco Technology Fund |
| Fidelity Advisor vs. Fidelity Advisor Health | Fidelity Advisor vs. Fidelity Advisor Financial | Fidelity Advisor vs. Fidelity Advisor Energy | Fidelity Advisor vs. Fidelity Advisor Semiconductors |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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