Correlation Between Mid-cap 15x and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Mid-cap 15x 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 Mid-cap 15x and Natixis Oakmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap 15x Strategy and Natixis Oakmark International, you can compare the effects of market volatilities on Mid-cap 15x 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 Mid-cap 15x with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid-cap 15x and Natixis Oakmark.
Diversification Opportunities for Mid-cap 15x and Natixis Oakmark
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mid-cap and Natixis is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap 15x Strategy 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 Mid-cap 15x 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 Mid Cap 15x Strategy 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 Mid-cap 15x i.e., Mid-cap 15x and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Mid-cap 15x and Natixis Oakmark
Assuming the 90 days horizon Mid Cap 15x Strategy is expected to under-perform the Natixis Oakmark. In addition to that, Mid-cap 15x is 1.71 times more volatile than Natixis Oakmark International. It trades about -0.34 of its total potential returns per unit of risk. Natixis Oakmark International is currently generating about 0.3 per unit of volatility. If you would invest 1,407 in Natixis Oakmark International on December 5, 2024 and sell it today you would earn a total of 78.00 from holding Natixis Oakmark International or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap 15x Strategy vs. Natixis Oakmark International
Performance |
| Timeline |
| Mid Cap 15x |
| Natixis Oakmark Inte |
Mid-cap 15x and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid-cap 15x and Natixis Oakmark
The main advantage of trading using opposite Mid-cap 15x and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid-cap 15x 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.| Mid-cap 15x vs. Basic Materials Fund | Mid-cap 15x vs. Basic Materials Fund | Mid-cap 15x vs. Banking Fund Class | Mid-cap 15x vs. Basic Materials Fund |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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