Correlation Between Natixis Sustainable and Vaughan Nelson
Can any of the company-specific risk be diversified away by investing in both Natixis Sustainable and Vaughan Nelson 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 Vaughan Nelson 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 Vaughan Nelson Select, you can compare the effects of market volatilities on Natixis Sustainable and Vaughan Nelson 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 Vaughan Nelson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Sustainable and Vaughan Nelson.
Diversification Opportunities for Natixis Sustainable and Vaughan Nelson
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Natixis and Vaughan is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Sustainable Future and Vaughan Nelson Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaughan Nelson Select 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 Vaughan Nelson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaughan Nelson Select has no effect on the direction of Natixis Sustainable i.e., Natixis Sustainable and Vaughan Nelson go up and down completely randomly.
Pair Corralation between Natixis Sustainable and Vaughan Nelson
Assuming the 90 days horizon Natixis Sustainable Future is expected to generate 0.85 times more return on investment than Vaughan Nelson. However, Natixis Sustainable Future is 1.18 times less risky than Vaughan Nelson. It trades about 0.08 of its potential returns per unit of risk. Vaughan Nelson Select is currently generating about 0.06 per unit of risk. If you would invest 1,097 in Natixis Sustainable Future on August 31, 2024 and sell it today you would earn a total of 271.00 from holding Natixis Sustainable Future or generate 24.7% 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. Vaughan Nelson Select
Performance |
| Timeline |
| Natixis Sustainable |
| Vaughan Nelson Select |
Natixis Sustainable and Vaughan Nelson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Sustainable and Vaughan Nelson
The main advantage of trading using opposite Natixis Sustainable and Vaughan Nelson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Sustainable position performs unexpectedly, Vaughan Nelson 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 Vaughan Nelson will offset losses from the drop in Vaughan Nelson's long position.| Natixis Sustainable vs. Vanguard Target Retirement | Natixis Sustainable vs. American Funds 2055 | Natixis Sustainable vs. American Funds 2055 | Natixis Sustainable vs. T Rowe Price |
| Vaughan Nelson vs. Aquagold International | Vaughan Nelson vs. Morningstar Unconstrained Allocation | Vaughan Nelson vs. Thrivent High Yield | Vaughan Nelson vs. Via Renewables |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stocks Directory Find actively traded stocks across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |