Correlation Between Via Renewables and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both Via Renewables 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 Via Renewables and Natixis ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Via Renewables and Natixis ETF Trust, you can compare the effects of market volatilities on Via Renewables 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 Via Renewables with a short position of Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Via Renewables and Natixis ETF.
Diversification Opportunities for Via Renewables and Natixis ETF
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Via and Natixis is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Via Renewables 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 Via Renewables 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 Via Renewables 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 Via Renewables i.e., Via Renewables and Natixis ETF go up and down completely randomly.
Pair Corralation between Via Renewables and Natixis ETF
Assuming the 90 days horizon Via Renewables is expected to generate 2.5 times more return on investment than Natixis ETF. However, Via Renewables is 2.5 times more volatile than Natixis ETF Trust. It trades about 0.06 of its potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.08 per unit of risk. If you would invest 1,710 in Via Renewables on August 26, 2024 and sell it today you would earn a total of 536.00 from holding Via Renewables or generate 31.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Via Renewables vs. Natixis ETF Trust
Performance |
| Timeline |
| Via Renewables |
| Natixis ETF Trust |
Via Renewables and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Via Renewables and Natixis ETF
The main advantage of trading using opposite Via Renewables and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Via Renewables 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.| Via Renewables vs. CMS Energy | Via Renewables vs. ACRES Commercial Realty | Via Renewables vs. Atlanticus Holdings Corp |
| Natixis ETF vs. Morningstar Unconstrained Allocation | Natixis ETF vs. High Yield Municipal Fund | Natixis ETF vs. Via Renewables | Natixis ETF vs. Knife River |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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