Correlation Between Asg Managed and Natixis Equity

Can any of the company-specific risk be diversified away by investing in both Asg Managed and Natixis Equity 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 Asg Managed and Natixis Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Asg Managed Futures and Natixis Equity Opportunities, you can compare the effects of market volatilities on Asg Managed and Natixis Equity 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 Asg Managed with a short position of Natixis Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Managed and Natixis Equity.

Diversification Opportunities for Asg Managed and Natixis Equity

0.69

Correlation Coefficient

Asg Managed  Natixis Equity

Poor diversification

The 3 months correlation between Asg and Natixis is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Asg Managed Futures and Natixis Equity Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Equity Oppor and Asg Managed 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 Asg Managed Futures are associated (or correlated) with Natixis Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Equity Oppor has no effect on the direction of Asg Managed i.e., Asg Managed and Natixis Equity go up and down completely randomly.

Pair Corralation between Asg Managed and Natixis Equity

Assuming the 90 days horizon Asg Managed is expected to generate 10.54 times less return on investment than Natixis Equity. But when comparing it to its historical volatility, Asg Managed Futures is 1.52 times less risky than Natixis Equity. It trades about 0.01 of its potential returns per unit of risk. Natixis Equity Opportunities is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  991.00  in Natixis Equity Opportunities on January 31, 2024 and sell it today you would earn a total of  449.00  from holding Natixis Equity Opportunities or generate 45.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Asg Managed Futures  vs.  Natixis Equity Opportunities

Asg Managed Futures

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Asg Managed Futures are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Asg Managed may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Natixis Equity Oppor

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Natixis Equity Opportunities are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Natixis Equity is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Asg Managed and Natixis Equity

The main advantage of trading using opposite Asg Managed and Natixis Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Managed position performs unexpectedly, Natixis Equity 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 Equity will offset losses from the drop in Natixis Equity's long position.

The idea behind Asg Managed Futures and Natixis Equity Opportunities pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.