Correlation Between Natixis Sustainable and Thornburg Better
Can any of the company-specific risk be diversified away by investing in both Natixis Sustainable and Thornburg Better 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 Thornburg Better 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 Thornburg Better World, you can compare the effects of market volatilities on Natixis Sustainable and Thornburg Better 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 Thornburg Better. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Sustainable and Thornburg Better.
Diversification Opportunities for Natixis Sustainable and Thornburg Better
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Natixis and Thornburg is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Sustainable Future and Thornburg Better World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg Better World 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 Thornburg Better. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg Better World has no effect on the direction of Natixis Sustainable i.e., Natixis Sustainable and Thornburg Better go up and down completely randomly.
Pair Corralation between Natixis Sustainable and Thornburg Better
Assuming the 90 days horizon Natixis Sustainable Future is expected to generate 0.63 times more return on investment than Thornburg Better. However, Natixis Sustainable Future is 1.6 times less risky than Thornburg Better. It trades about 0.13 of its potential returns per unit of risk. Thornburg Better World is currently generating about 0.03 per unit of risk. If you would invest 1,186 in Natixis Sustainable Future on September 1, 2024 and sell it today you would earn a total of 103.00 from holding Natixis Sustainable Future or generate 8.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natixis Sustainable Future vs. Thornburg Better World
Performance |
| Timeline |
| Natixis Sustainable |
| Thornburg Better World |
Natixis Sustainable and Thornburg Better Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Sustainable and Thornburg Better
The main advantage of trading using opposite Natixis Sustainable and Thornburg Better positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Sustainable position performs unexpectedly, Thornburg Better 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 Thornburg Better will offset losses from the drop in Thornburg Better's long position.The idea behind Natixis Sustainable Future and Thornburg Better World pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Thornburg Better vs. Calvert Emerging Markets | Thornburg Better vs. Shelton Green Alpha | Thornburg Better vs. Tiaa Cref Green Bond | Thornburg Better vs. Portfolio 21 Global |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |