Correlation Between Natixis ETF and JPMorgan BetaBuilders
Can any of the company-specific risk be diversified away by investing in both Natixis ETF and JPMorgan BetaBuilders 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 Natixis ETF and JPMorgan BetaBuilders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natixis ETF Trust and JPMorgan BetaBuilders International, you can compare the effects of market volatilities on Natixis ETF and JPMorgan BetaBuilders 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 Natixis ETF with a short position of JPMorgan BetaBuilders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis ETF and JPMorgan BetaBuilders.
Diversification Opportunities for Natixis ETF and JPMorgan BetaBuilders
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Natixis and JPMorgan is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Natixis ETF Trust and JPMorgan BetaBuilders Internat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan BetaBuilders and Natixis ETF 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 Natixis ETF Trust are associated (or correlated) with JPMorgan BetaBuilders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan BetaBuilders has no effect on the direction of Natixis ETF i.e., Natixis ETF and JPMorgan BetaBuilders go up and down completely randomly.
Pair Corralation between Natixis ETF and JPMorgan BetaBuilders
Given the investment horizon of 90 days Natixis ETF Trust is expected to under-perform the JPMorgan BetaBuilders. But the etf apears to be less risky and, when comparing its historical volatility, Natixis ETF Trust is 1.04 times less risky than JPMorgan BetaBuilders. The etf trades about -0.23 of its potential returns per unit of risk. The JPMorgan BetaBuilders International is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5,974 in JPMorgan BetaBuilders International on November 28, 2024 and sell it today you would earn a total of 231.00 from holding JPMorgan BetaBuilders International or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natixis ETF Trust vs. JPMorgan BetaBuilders Internat
Performance |
| Timeline |
| Natixis ETF Trust |
| JPMorgan BetaBuilders |
Natixis ETF and JPMorgan BetaBuilders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis ETF and JPMorgan BetaBuilders
The main advantage of trading using opposite Natixis ETF and JPMorgan BetaBuilders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis ETF position performs unexpectedly, JPMorgan BetaBuilders 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 JPMorgan BetaBuilders will offset losses from the drop in JPMorgan BetaBuilders' long position.| Natixis ETF vs. Simplify Equity PLUS | Natixis ETF vs. Virtus WMC International | Natixis ETF vs. Affinity World Leaders |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stocks Directory Find actively traded stocks across global markets |