Correlation Between Oracle and Natixis Sustainable
Can any of the company-specific risk be diversified away by investing in both Oracle and Natixis Sustainable 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 Oracle and Natixis Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Natixis Sustainable Future, you can compare the effects of market volatilities on Oracle and Natixis Sustainable 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 Oracle with a short position of Natixis Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Natixis Sustainable.
Diversification Opportunities for Oracle and Natixis Sustainable
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oracle and Natixis is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Natixis Sustainable Future in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Sustainable and Oracle 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 Oracle are associated (or correlated) with Natixis Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Sustainable has no effect on the direction of Oracle i.e., Oracle and Natixis Sustainable go up and down completely randomly.
Pair Corralation between Oracle and Natixis Sustainable
Given the investment horizon of 90 days Oracle is expected to generate 2.82 times more return on investment than Natixis Sustainable. However, Oracle is 2.82 times more volatile than Natixis Sustainable Future. It trades about 0.07 of its potential returns per unit of risk. Natixis Sustainable Future is currently generating about 0.09 per unit of risk. If you would invest 11,420 in Oracle on September 4, 2024 and sell it today you would earn a total of 6,721 from holding Oracle or generate 58.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oracle vs. Natixis Sustainable Future
Performance |
| Timeline |
| Oracle |
| Natixis Sustainable |
Oracle and Natixis Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Natixis Sustainable
The main advantage of trading using opposite Oracle and Natixis Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Natixis Sustainable 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 Sustainable will offset losses from the drop in Natixis Sustainable's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Natixis Sustainable vs. Multimanager Lifestyle Aggressive | Natixis Sustainable vs. Ab Global Risk | Natixis Sustainable vs. Pace High Yield | Natixis Sustainable vs. Siit High Yield |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |