Correlation Between Alliancebernstein and Natixis Oakmark

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

By analyzing existing cross correlation between Alliancebernstein Global High and Natixis Oakmark Fund, you can compare the effects of market volatilities on Alliancebernstein 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 Alliancebernstein with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Natixis Oakmark.

Diversification Opportunities for Alliancebernstein and Natixis Oakmark

-0.33

Correlation Coefficient

Alliancebernstein  Natixis Oakmark

Very good diversification

The 3 months correlation between Alliancebernstein and Natixis is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Natixis Oakmark Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark and Alliancebernstein 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 Alliancebernstein Global High 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 has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Natixis Oakmark go up and down completely randomly.

Pair Corralation between Alliancebernstein and Natixis Oakmark

Considering the 90-day investment horizon Alliancebernstein is expected to generate 27.53 times less return on investment than Natixis Oakmark. But when comparing it to its historical volatility, Alliancebernstein Global High is 2.03 times less risky than Natixis Oakmark. It trades about 0.01 of its potential returns per unit of risk. Natixis Oakmark Fund is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  2,318  in Natixis Oakmark Fund on September 3, 2024 and sell it today you would earn a total of  212.00  from holding Natixis Oakmark Fund or generate 9.15% return on investment over 90 days.

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

Alliancebernstein Global High  vs.  Natixis Oakmark Fund

Alliancebernstein

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alliancebernstein Global High has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, Alliancebernstein is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Natixis Oakmark

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Natixis Oakmark Fund are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Natixis Oakmark may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Alliancebernstein and Natixis Oakmark

The main advantage of trading using opposite Alliancebernstein and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein 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.

The idea behind Alliancebernstein Global High and Natixis Oakmark Fund 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.