Correlation Between Affinity World and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both Affinity World 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 Affinity World and Natixis ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affinity World Leaders and Natixis ETF Trust, you can compare the effects of market volatilities on Affinity World 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 Affinity World with a short position of Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affinity World and Natixis ETF.
Diversification Opportunities for Affinity World and Natixis ETF
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Affinity and Natixis is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Affinity World Leaders 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 Affinity World 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 Affinity World Leaders 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 Affinity World i.e., Affinity World and Natixis ETF go up and down completely randomly.
Pair Corralation between Affinity World and Natixis ETF
Given the investment horizon of 90 days Affinity World Leaders is expected to generate 0.94 times more return on investment than Natixis ETF. However, Affinity World Leaders is 1.07 times less risky than Natixis ETF. It trades about 0.36 of its potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.27 per unit of risk. If you would invest 3,268 in Affinity World Leaders on September 1, 2024 and sell it today you would earn a total of 226.00 from holding Affinity World Leaders or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affinity World Leaders vs. Natixis ETF Trust
Performance |
| Timeline |
| Affinity World Leaders |
| Natixis ETF Trust |
Affinity World and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affinity World and Natixis ETF
The main advantage of trading using opposite Affinity World and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affinity World 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.| Affinity World vs. FCF International Quality | Affinity World vs. American Century STOXX | Affinity World vs. PIMCO RAFI Dynamic | Affinity World vs. ProShares SP 500 |
| Natixis ETF vs. Vanguard Total Stock | Natixis ETF vs. SPDR SP 500 | Natixis ETF vs. iShares Core SP | Natixis ETF vs. Vanguard Dividend Appreciation |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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