Correlation Between Evaluator Conservative and Natixis Oakmark

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

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

Diversification Opportunities for Evaluator Conservative and Natixis Oakmark

0.55

Correlation Coefficient

Evaluator Conservative  Natixis Oakmark

Very weak diversification

The 3 months correlation between Evaluator and Natixis is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Evaluator Conservative Rms and Natixis Oakmark Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark Intl and Evaluator Conservative 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 Evaluator Conservative Rms 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 Intl has no effect on the direction of Evaluator Conservative i.e., Evaluator Conservative and Natixis Oakmark go up and down completely randomly.

Pair Corralation between Evaluator Conservative and Natixis Oakmark

Assuming the 90 days horizon Evaluator Conservative is expected to generate 41.11 times less return on investment than Natixis Oakmark. But when comparing it to its historical volatility, Evaluator Conservative Rms is 3.77 times less risky than Natixis Oakmark. It trades about 0.01 of its potential returns per unit of risk. Natixis Oakmark Intl is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,340  in Natixis Oakmark Intl on December 30, 2024 and sell it today you would earn a total of  131.00  from holding Natixis Oakmark Intl or generate 9.78% return on investment over 90 days.

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

Evaluator Conservative Rms  vs.  Natixis Oakmark Intl

Evaluator Conservative

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Evaluator Conservative Rms are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Evaluator Conservative is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Natixis Oakmark Intl

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Natixis Oakmark Intl are ranked lower than 11 (%) 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 April 2025.

Pair Trading with Evaluator Conservative and Natixis Oakmark

The main advantage of trading using opposite Evaluator Conservative and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evaluator Conservative 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 Evaluator Conservative Rms and Natixis Oakmark Intl 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.