Correlation Between Natixis ETF and Innovator
Can any of the company-specific risk be diversified away by investing in both Natixis ETF and Innovator 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 Innovator 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 Innovator SP 500, you can compare the effects of market volatilities on Natixis ETF and Innovator 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 Innovator. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis ETF and Innovator.
Diversification Opportunities for Natixis ETF and Innovator
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Natixis and Innovator is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Natixis ETF Trust and Innovator SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator SP 500 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 Innovator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator SP 500 has no effect on the direction of Natixis ETF i.e., Natixis ETF and Innovator go up and down completely randomly.
Pair Corralation between Natixis ETF and Innovator
Given the investment horizon of 90 days Natixis ETF Trust is expected to generate 2.99 times more return on investment than Innovator. However, Natixis ETF is 2.99 times more volatile than Innovator SP 500. It trades about 0.06 of its potential returns per unit of risk. Innovator SP 500 is currently generating about 0.15 per unit of risk. If you would invest 3,443 in Natixis ETF Trust on August 30, 2024 and sell it today you would earn a total of 52.00 from holding Natixis ETF Trust or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Natixis ETF Trust vs. Innovator SP 500
Performance |
| Timeline |
| Natixis ETF Trust |
| Innovator SP 500 |
Natixis ETF and Innovator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis ETF and Innovator
The main advantage of trading using opposite Natixis ETF and Innovator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis ETF position performs unexpectedly, Innovator 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 Innovator will offset losses from the drop in Innovator's long position.| Natixis ETF vs. JPMorgan BetaBuilders International | Natixis ETF vs. JPMorgan Core Plus | Natixis ETF vs. JPMorgan BetaBuilders Canada | Natixis ETF vs. JPMorgan Emerging Markets |
| Innovator vs. Innovator SP 500 | Innovator vs. Innovator Equity Ultra | Innovator vs. Innovator SP 500 | Innovator vs. Innovator SP 500 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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