Correlation Between Vanguard FTSE and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both Vanguard FTSE and Natixis ETF 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 Vanguard FTSE and Natixis ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard FTSE Developed and Natixis ETF Trust, you can compare the effects of market volatilities on Vanguard FTSE and Natixis ETF 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 Vanguard FTSE with a short position of Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard FTSE and Natixis ETF.
Diversification Opportunities for Vanguard FTSE and Natixis ETF
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vanguard and Natixis is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard FTSE Developed and Natixis ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis ETF Trust and Vanguard FTSE 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 Vanguard FTSE Developed are associated (or correlated) with Natixis ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis ETF Trust has no effect on the direction of Vanguard FTSE i.e., Vanguard FTSE and Natixis ETF go up and down completely randomly.
Pair Corralation between Vanguard FTSE and Natixis ETF
Considering the 90-day investment horizon Vanguard FTSE Developed is expected to generate 0.57 times more return on investment than Natixis ETF. However, Vanguard FTSE Developed is 1.75 times less risky than Natixis ETF. It trades about 0.26 of its potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.03 per unit of risk. If you would invest 4,785 in Vanguard FTSE Developed on October 24, 2024 and sell it today you would earn a total of 166.00 from holding Vanguard FTSE Developed or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Vanguard FTSE Developed vs. Natixis ETF Trust
Performance |
| Timeline |
| Vanguard FTSE Developed |
| Natixis ETF Trust |
Vanguard FTSE and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard FTSE and Natixis ETF
The main advantage of trading using opposite Vanguard FTSE and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard FTSE position performs unexpectedly, Natixis ETF 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 ETF will offset losses from the drop in Natixis ETF's long position.| Vanguard FTSE vs. Vanguard FTSE Emerging | Vanguard FTSE vs. Vanguard Small Cap Index | Vanguard FTSE vs. Vanguard Value Index | Vanguard FTSE vs. Vanguard Small Cap Value |
| Natixis ETF vs. FT Vest Equity | Natixis ETF vs. Northern Lights | Natixis ETF vs. Dimensional International High | Natixis ETF vs. JPMorgan Fundamental Data |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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