Correlation Between Natixis Sustainable and Thrivent Natural
Can any of the company-specific risk be diversified away by investing in both Natixis Sustainable and Thrivent Natural 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 Thrivent Natural 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 Thrivent Natural Resources, you can compare the effects of market volatilities on Natixis Sustainable and Thrivent Natural 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 Thrivent Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Sustainable and Thrivent Natural.
Diversification Opportunities for Natixis Sustainable and Thrivent Natural
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Natixis and Thrivent is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Sustainable Future and Thrivent Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Natural Res 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 Thrivent Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Natural Res has no effect on the direction of Natixis Sustainable i.e., Natixis Sustainable and Thrivent Natural go up and down completely randomly.
Pair Corralation between Natixis Sustainable and Thrivent Natural
Assuming the 90 days horizon Natixis Sustainable Future is expected to under-perform the Thrivent Natural. In addition to that, Natixis Sustainable is 18.52 times more volatile than Thrivent Natural Resources. It trades about -0.05 of its total potential returns per unit of risk. Thrivent Natural Resources is currently generating about 0.6 per unit of volatility. If you would invest 989.00 in Thrivent Natural Resources on October 20, 2024 and sell it today you would earn a total of 7.00 from holding Thrivent Natural Resources or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Natixis Sustainable Future vs. Thrivent Natural Resources
Performance |
| Timeline |
| Natixis Sustainable |
| Thrivent Natural Res |
Natixis Sustainable and Thrivent Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Sustainable and Thrivent Natural
The main advantage of trading using opposite Natixis Sustainable and Thrivent Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Sustainable position performs unexpectedly, Thrivent Natural 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 Thrivent Natural will offset losses from the drop in Thrivent Natural's long position.| Natixis Sustainable vs. Pgim Jennison Technology | Natixis Sustainable vs. Blackrock Science Technology | Natixis Sustainable vs. Global Technology Portfolio | Natixis Sustainable vs. Red Oak Technology |
| Thrivent Natural vs. Short Real Estate | Thrivent Natural vs. Nexpoint Real Estate | Thrivent Natural vs. Real Estate Ultrasector | Thrivent Natural vs. Columbia Real Estate |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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