Correlation Between NYSE Composite and Natixis Us
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Natixis Us 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 NYSE Composite and Natixis Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Natixis Equity Opportunities, you can compare the effects of market volatilities on NYSE Composite and Natixis Us 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 NYSE Composite with a short position of Natixis Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Natixis Us.
Diversification Opportunities for NYSE Composite and Natixis Us
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Natixis is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Natixis Equity Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Equity Oppor and NYSE Composite 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 NYSE Composite are associated (or correlated) with Natixis Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Equity Oppor has no effect on the direction of NYSE Composite i.e., NYSE Composite and Natixis Us go up and down completely randomly.
Pair Corralation between NYSE Composite and Natixis Us
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.51 times more return on investment than Natixis Us. However, NYSE Composite is 1.96 times less risky than Natixis Us. It trades about 0.09 of its potential returns per unit of risk. Natixis Equity Opportunities is currently generating about 0.03 per unit of risk. If you would invest 1,721,232 in NYSE Composite on November 3, 2024 and sell it today you would earn a total of 278,650 from holding NYSE Composite or generate 16.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Natixis Equity Opportunities
Performance |
| Timeline |
NYSE Composite and Natixis Us Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Natixis Equity Opportunities
Pair trading matchups for Natixis Us
Pair Trading with NYSE Composite and Natixis Us
The main advantage of trading using opposite NYSE Composite and Natixis Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Natixis Us 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 Natixis Us will offset losses from the drop in Natixis Us' long position.| NYSE Composite vs. Arrow Electronics | NYSE Composite vs. Cirmaker Technology | NYSE Composite vs. Zhihu Inc ADR | NYSE Composite vs. Weibo Corp |
| Natixis Us vs. Qs Large Cap | Natixis Us vs. Calvert Large Cap | Natixis Us vs. Touchstone Large Cap | Natixis Us vs. Virtus Nfj Large Cap |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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