Correlation Between Global X and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both Global X 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 Global X and Natixis ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X SP and Natixis ETF Trust, you can compare the effects of market volatilities on Global X 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 Global X with a short position of Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Natixis ETF.
Diversification Opportunities for Global X and Natixis ETF
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Global and Natixis is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Global X SP 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 Global X 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 Global X SP 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 Global X i.e., Global X and Natixis ETF go up and down completely randomly.
Pair Corralation between Global X and Natixis ETF
Given the investment horizon of 90 days Global X SP is expected to generate 0.94 times more return on investment than Natixis ETF. However, Global X SP is 1.07 times less risky than Natixis ETF. It trades about 0.12 of its potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.1 per unit of risk. If you would invest 2,312 in Global X SP on August 30, 2024 and sell it today you would earn a total of 990.00 from holding Global X SP or generate 42.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 48.89% |
| Values | Daily Returns |
Global X SP vs. Natixis ETF Trust
Performance |
| Timeline |
| Global X SP |
| Natixis ETF Trust |
Global X and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Natixis ETF
The main advantage of trading using opposite Global X and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. Global X Nasdaq | Global X vs. Global X SP | Global X vs. Global X Russell | Global X vs. Global X SP |
| Natixis ETF vs. Freedom Day Dividend | Natixis ETF vs. Franklin Templeton ETF | Natixis ETF vs. iShares MSCI China | Natixis ETF vs. Tidal Trust II |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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