Correlation Between Natixis Sustainable and Multimanager Lifestyle
Can any of the company-specific risk be diversified away by investing in both Natixis Sustainable and Multimanager Lifestyle 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 Multimanager Lifestyle 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 Multimanager Lifestyle Aggressive, you can compare the effects of market volatilities on Natixis Sustainable and Multimanager Lifestyle 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 Multimanager Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Sustainable and Multimanager Lifestyle.
Diversification Opportunities for Natixis Sustainable and Multimanager Lifestyle
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Natixis and MULTIMANAGER is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Sustainable Future and Multimanager Lifestyle Aggress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimanager Lifestyle 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 Multimanager Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimanager Lifestyle has no effect on the direction of Natixis Sustainable i.e., Natixis Sustainable and Multimanager Lifestyle go up and down completely randomly.
Pair Corralation between Natixis Sustainable and Multimanager Lifestyle
Assuming the 90 days horizon Natixis Sustainable Future is expected to generate 0.92 times more return on investment than Multimanager Lifestyle. However, Natixis Sustainable Future is 1.08 times less risky than Multimanager Lifestyle. It trades about 0.36 of its potential returns per unit of risk. Multimanager Lifestyle Aggressive is currently generating about 0.32 per unit of risk. If you would invest 1,340 in Natixis Sustainable Future on September 4, 2024 and sell it today you would earn a total of 58.00 from holding Natixis Sustainable Future or generate 4.33% 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. Multimanager Lifestyle Aggress
Performance |
| Timeline |
| Natixis Sustainable |
| Multimanager Lifestyle |
Natixis Sustainable and Multimanager Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Sustainable and Multimanager Lifestyle
The main advantage of trading using opposite Natixis Sustainable and Multimanager Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Sustainable position performs unexpectedly, Multimanager Lifestyle 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 Multimanager Lifestyle will offset losses from the drop in Multimanager Lifestyle's long position.| Natixis Sustainable vs. Multimanager Lifestyle Aggressive | Natixis Sustainable vs. T Rowe Price | Natixis Sustainable vs. Siit High Yield | Natixis Sustainable vs. Victory High Income |
| Multimanager Lifestyle vs. Needham Aggressive Growth | Multimanager Lifestyle vs. Calvert High Yield | Multimanager Lifestyle vs. Siit High Yield | Multimanager Lifestyle vs. Victory High Income |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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