Correlation Between Natixis Sustainable and Gateway Fund
Can any of the company-specific risk be diversified away by investing in both Natixis Sustainable and Gateway Fund 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 Gateway Fund 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 Gateway Fund Class, you can compare the effects of market volatilities on Natixis Sustainable and Gateway Fund 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 Gateway Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Sustainable and Gateway Fund.
Diversification Opportunities for Natixis Sustainable and Gateway Fund
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Natixis and GATEWAY is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Sustainable Future and Gateway Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Fund Class 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 Gateway Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Fund Class has no effect on the direction of Natixis Sustainable i.e., Natixis Sustainable and Gateway Fund go up and down completely randomly.
Pair Corralation between Natixis Sustainable and Gateway Fund
Assuming the 90 days horizon Natixis Sustainable is expected to generate 1.15 times less return on investment than Gateway Fund. But when comparing it to its historical volatility, Natixis Sustainable Future is 1.01 times less risky than Gateway Fund. It trades about 0.18 of its potential returns per unit of risk. Gateway Fund Class is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,586 in Gateway Fund Class on August 28, 2024 and sell it today you would earn a total of 105.00 from holding Gateway Fund Class or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natixis Sustainable Future vs. Gateway Fund Class
Performance |
| Timeline |
| Natixis Sustainable |
| Gateway Fund Class |
Natixis Sustainable and Gateway Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Sustainable and Gateway Fund
The main advantage of trading using opposite Natixis Sustainable and Gateway Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Sustainable position performs unexpectedly, Gateway Fund 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 Gateway Fund will offset losses from the drop in Gateway Fund's long position.| Natixis Sustainable vs. Pace Large Growth | Natixis Sustainable vs. Tax Managed Large Cap | Natixis Sustainable vs. Federated Mdt Large | Natixis Sustainable vs. Rational Strategic Allocation |
| Gateway Fund vs. Allianzgi Vertible Fund | Gateway Fund vs. Franklin Vertible Securities | Gateway Fund vs. Putnam Convertible Incm Gwth | Gateway Fund vs. Gabelli Convertible And |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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