Correlation Between NYSE Composite and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Natixis Oakmark 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 Oakmark 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 Oakmark, you can compare the effects of market volatilities on NYSE Composite and Natixis Oakmark 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 Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Natixis Oakmark.
Diversification Opportunities for NYSE Composite and Natixis Oakmark
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Natixis is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Natixis Oakmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark 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 Oakmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Oakmark has no effect on the direction of NYSE Composite i.e., NYSE Composite and Natixis Oakmark go up and down completely randomly.
Pair Corralation between NYSE Composite and Natixis Oakmark
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.1 times less return on investment than Natixis Oakmark. But when comparing it to its historical volatility, NYSE Composite is 1.43 times less risky than Natixis Oakmark. It trades about 0.08 of its potential returns per unit of risk. Natixis Oakmark is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,705 in Natixis Oakmark on August 26, 2024 and sell it today you would earn a total of 857.00 from holding Natixis Oakmark or generate 31.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Natixis Oakmark
Performance |
| Timeline |
NYSE Composite and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Natixis Oakmark
Pair trading matchups for Natixis Oakmark
Pair Trading with NYSE Composite and Natixis Oakmark
The main advantage of trading using opposite NYSE Composite and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Natixis Oakmark 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 Oakmark will offset losses from the drop in Natixis Oakmark's long position.| NYSE Composite vs. Grocery Outlet Holding | NYSE Composite vs. Tencent Music Entertainment | NYSE Composite vs. SunLink Health Systems | NYSE Composite vs. Getty Realty |
| Natixis Oakmark vs. Aqr Large Cap | Natixis Oakmark vs. Morningstar Unconstrained Allocation | Natixis Oakmark vs. Quantitative U S | Natixis Oakmark vs. Alternative Asset Allocation |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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