Correlation Between Gabelli Gold and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold 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 Gabelli Gold and Natixis Oakmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Gold Fund and Natixis Oakmark, you can compare the effects of market volatilities on Gabelli Gold 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 Gabelli Gold with a short position of Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Natixis Oakmark.
Diversification Opportunities for Gabelli Gold and Natixis Oakmark
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gabelli and Natixis is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Natixis Oakmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark and Gabelli Gold 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 Gabelli Gold Fund 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 Gabelli Gold i.e., Gabelli Gold and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Gabelli Gold and Natixis Oakmark
Assuming the 90 days horizon Gabelli Gold Fund is expected to under-perform the Natixis Oakmark. In addition to that, Gabelli Gold is 1.51 times more volatile than Natixis Oakmark. It trades about -0.11 of its total potential returns per unit of risk. Natixis Oakmark is currently generating about 0.0 per unit of volatility. If you would invest 3,358 in Natixis Oakmark on October 21, 2024 and sell it today you would lose (18.00) from holding Natixis Oakmark or give up 0.54% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Gabelli Gold Fund vs. Natixis Oakmark
Performance |
Timeline |
Gabelli Gold |
Natixis Oakmark |
Gabelli Gold and Natixis Oakmark Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gabelli Gold and Natixis Oakmark
The main advantage of trading using opposite Gabelli Gold and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold 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.Gabelli Gold vs. 1919 Financial Services | ||
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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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