Correlation Between WisdomTree Emerging and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both WisdomTree Emerging 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 WisdomTree Emerging and Natixis ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Emerging Markets and Natixis ETF Trust, you can compare the effects of market volatilities on WisdomTree Emerging 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 WisdomTree Emerging with a short position of Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Emerging and Natixis ETF.
Diversification Opportunities for WisdomTree Emerging and Natixis ETF
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WisdomTree and Natixis is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Emerging Markets 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 WisdomTree Emerging 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 WisdomTree Emerging Markets 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 WisdomTree Emerging i.e., WisdomTree Emerging and Natixis ETF go up and down completely randomly.
Pair Corralation between WisdomTree Emerging and Natixis ETF
Allowing for the 90-day total investment horizon WisdomTree Emerging Markets is expected to under-perform the Natixis ETF. But the etf apears to be less risky and, when comparing its historical volatility, WisdomTree Emerging Markets is 1.64 times less risky than Natixis ETF. The etf trades about -0.19 of its potential returns per unit of risk. The Natixis ETF Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,681 in Natixis ETF Trust on August 30, 2024 and sell it today you would earn a total of 130.00 from holding Natixis ETF Trust or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Emerging Markets vs. Natixis ETF Trust
Performance |
| Timeline |
| WisdomTree Emerging |
| Natixis ETF Trust |
WisdomTree Emerging and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Emerging and Natixis ETF
The main advantage of trading using opposite WisdomTree Emerging and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Emerging 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.| WisdomTree Emerging vs. ABIVAX Socit Anonyme | WisdomTree Emerging vs. HUMANA INC | WisdomTree Emerging vs. SCOR PK | WisdomTree Emerging vs. Aquagold International |
| Natixis ETF vs. Davis Select International | Natixis ETF vs. Tidal ETF Trust | Natixis ETF vs. Principal Value ETF | Natixis ETF vs. WisdomTree Emerging Markets |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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