Correlation Between Vaughan Nelson and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Vaughan Nelson 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 Vaughan Nelson and Natixis Oakmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaughan Nelson Select and Natixis Oakmark Fund, you can compare the effects of market volatilities on Vaughan Nelson 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 Vaughan Nelson with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaughan Nelson and Natixis Oakmark.
Diversification Opportunities for Vaughan Nelson and Natixis Oakmark
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vaughan and Natixis is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Vaughan Nelson Select and Natixis Oakmark Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark and Vaughan Nelson 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 Vaughan Nelson Select 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 has no effect on the direction of Vaughan Nelson i.e., Vaughan Nelson and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Vaughan Nelson and Natixis Oakmark
Assuming the 90 days horizon Vaughan Nelson Select is expected to generate 0.81 times more return on investment than Natixis Oakmark. However, Vaughan Nelson Select is 1.23 times less risky than Natixis Oakmark. It trades about 0.07 of its potential returns per unit of risk. Natixis Oakmark Fund is currently generating about 0.06 per unit of risk. If you would invest 1,717 in Vaughan Nelson Select on September 3, 2024 and sell it today you would earn a total of 561.00 from holding Vaughan Nelson Select or generate 32.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vaughan Nelson Select vs. Natixis Oakmark Fund
Performance |
| Timeline |
| Vaughan Nelson Select |
| Natixis Oakmark |
Vaughan Nelson and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vaughan Nelson and Natixis Oakmark
The main advantage of trading using opposite Vaughan Nelson and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaughan Nelson 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.| Vaughan Nelson vs. Gabelli Global Financial | Vaughan Nelson vs. John Hancock Financial | Vaughan Nelson vs. Fidelity Advisor Financial | Vaughan Nelson vs. Vanguard Financials Index |
| Natixis Oakmark vs. Vanguard Value Index | Natixis Oakmark vs. Dodge Cox Stock | Natixis Oakmark vs. American Mutual Fund | Natixis Oakmark vs. American Funds American |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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