Correlation Between Gabelli Healthcare and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Gabelli Healthcare 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 Gabelli Healthcare and Natixis Oakmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Healthcare and Natixis Oakmark International, you can compare the effects of market volatilities on Gabelli Healthcare 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 Gabelli Healthcare with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Healthcare and Natixis Oakmark.
Diversification Opportunities for Gabelli Healthcare and Natixis Oakmark
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gabelli and Natixis is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Healthcare and Natixis Oakmark International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark Inte and Gabelli Healthcare 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 The Gabelli Healthcare 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 Inte has no effect on the direction of Gabelli Healthcare i.e., Gabelli Healthcare and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Gabelli Healthcare and Natixis Oakmark
Assuming the 90 days horizon The Gabelli Healthcare is expected to under-perform the Natixis Oakmark. But the mutual fund apears to be less risky and, when comparing its historical volatility, The Gabelli Healthcare is 1.12 times less risky than Natixis Oakmark. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Natixis Oakmark International is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,224 in Natixis Oakmark International on September 14, 2024 and sell it today you would earn a total of 205.00 from holding Natixis Oakmark International or generate 16.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Healthcare vs. Natixis Oakmark International
Performance |
| Timeline |
| The Gabelli Healthcare |
| Natixis Oakmark Inte |
Gabelli Healthcare and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Healthcare and Natixis Oakmark
The main advantage of trading using opposite Gabelli Healthcare and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Healthcare 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.| Gabelli Healthcare vs. Large Cap Growth Profund | Gabelli Healthcare vs. Qs Large Cap | Gabelli Healthcare vs. Avantis Large Cap | Gabelli Healthcare vs. Dana Large Cap |
| Natixis Oakmark vs. Scout Small Cap | Natixis Oakmark vs. Champlain Small | Natixis Oakmark vs. Lebenthal Lisanti Small | Natixis Oakmark vs. Glg Intl Small |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |