Correlation Between Natixis ETF and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Natixis ETF and NYSE Composite 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 Natixis ETF and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natixis ETF Trust and NYSE Composite, you can compare the effects of market volatilities on Natixis ETF and NYSE Composite 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 Natixis ETF with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis ETF and NYSE Composite.
Diversification Opportunities for Natixis ETF and NYSE Composite
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Natixis and NYSE is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Natixis ETF Trust and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Natixis ETF 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 Natixis ETF Trust are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Natixis ETF i.e., Natixis ETF and NYSE Composite go up and down completely randomly.
Pair Corralation between Natixis ETF and NYSE Composite
Given the investment horizon of 90 days Natixis ETF Trust is expected to under-perform the NYSE Composite. In addition to that, Natixis ETF is 1.18 times more volatile than NYSE Composite. It trades about -0.09 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.02 per unit of volatility. If you would invest 1,799,427 in NYSE Composite on March 8, 2024 and sell it today you would earn a total of 5,123 from holding NYSE Composite or generate 0.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Natixis ETF Trust vs. NYSE Composite
Performance |
Timeline |
Natixis ETF and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Natixis ETF Trust
Pair trading matchups for Natixis ETF
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Natixis ETF and NYSE Composite
The main advantage of trading using opposite Natixis ETF and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis ETF position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Natixis ETF vs. iShares Core SP | Natixis ETF vs. iShares Russell Mid Cap | Natixis ETF vs. John Hancock Multifactor | Natixis ETF vs. JPMorgan BetaBuilders Mid |
NYSE Composite vs. Asure Software | NYSE Composite vs. SunLink Health Systems | NYSE Composite vs. Tradeweb Markets | NYSE Composite vs. Cedar Realty Trust |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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