Correlation Between Deutsche Real and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Deutsche Real 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 Deutsche Real and Natixis Oakmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Real Estate and Natixis Oakmark International, you can compare the effects of market volatilities on Deutsche Real 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 Deutsche Real with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Real and Natixis Oakmark.
Diversification Opportunities for Deutsche Real and Natixis Oakmark
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DEUTSCHE and NATIXIS is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Real Estate and Natixis Oakmark International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark Inte and Deutsche Real 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 Deutsche Real Estate 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 Inte has no effect on the direction of Deutsche Real i.e., Deutsche Real and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Deutsche Real and Natixis Oakmark
Assuming the 90 days horizon Deutsche Real Estate is expected to generate 0.84 times more return on investment than Natixis Oakmark. However, Deutsche Real Estate is 1.19 times less risky than Natixis Oakmark. It trades about 0.17 of its potential returns per unit of risk. Natixis Oakmark International is currently generating about -0.03 per unit of risk. If you would invest 1,996 in Deutsche Real Estate on September 2, 2024 and sell it today you would earn a total of 393.00 from holding Deutsche Real Estate or generate 19.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Real Estate vs. Natixis Oakmark International
Performance |
| Timeline |
| Deutsche Real Estate |
| Natixis Oakmark Inte |
Deutsche Real and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Real and Natixis Oakmark
The main advantage of trading using opposite Deutsche Real and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Real 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.| Deutsche Real vs. Realty Income | Deutsche Real vs. Dynex Capital | Deutsche Real vs. First Industrial Realty | Deutsche Real vs. Healthcare Realty Trust |
| Natixis Oakmark vs. Transamerica Cleartrack Retirement | Natixis Oakmark vs. Fidelity Managed Retirement | Natixis Oakmark vs. Jp Morgan Smartretirement | Natixis Oakmark vs. Franklin Lifesmart Retirement |
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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