Correlation Between Vaughan Nelson and Natixis Us

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

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

Diversification Opportunities for Vaughan Nelson and Natixis Us

0.95

Correlation Coefficient

Vaughan Nelson  Natixis Us

Almost no diversification

The 3 months correlation between Vaughan and Natixis is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Vaughan Nelson Small 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 Vaughan Nelson 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 Vaughan Nelson Small are associated (or correlated) with Natixis Us. 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 Vaughan Nelson i.e., Vaughan Nelson and Natixis Us go up and down completely randomly.

Pair Corralation between Vaughan Nelson and Natixis Us

Assuming the 90 days horizon Vaughan Nelson is expected to generate 1.39 times less return on investment than Natixis Us. In addition to that, Vaughan Nelson is 1.4 times more volatile than Natixis Equity Opportunities. It trades about 0.14 of its total potential returns per unit of risk. Natixis Equity Opportunities is currently generating about 0.26 per unit of volatility. If you would invest  4,118  in Natixis Equity Opportunities on September 5, 2024 and sell it today you would earn a total of  614.00  from holding Natixis Equity Opportunities or generate 14.91% return on investment over 90 days.

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

Vaughan Nelson Small  vs.  Natixis Equity Opportunities

Vaughan Nelson Small

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vaughan Nelson Small are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking indicators, Vaughan Nelson may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Natixis Equity Oppor

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Natixis Equity Opportunities are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Natixis Us showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vaughan Nelson and Natixis Us

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

The idea behind Vaughan Nelson Small 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.