Correlation Between Natixis Oakmark and Mid Cap

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

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

Diversification Opportunities for Natixis Oakmark and Mid Cap

-0.63

Correlation Coefficient

Natixis Oakmark  Mid Cap

Excellent diversification

The 3 months correlation between Natixis and Mid is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Oakmark International and Mid Cap Value Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Value and Natixis Oakmark 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 Natixis Oakmark International are associated (or correlated) with Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Value has no effect on the direction of Natixis Oakmark i.e., Natixis Oakmark and Mid Cap go up and down completely randomly.

Pair Corralation between Natixis Oakmark and Mid Cap

Assuming the 90 days horizon Natixis Oakmark is expected to generate 65.82 times less return on investment than Mid Cap. In addition to that, Natixis Oakmark is 1.12 times more volatile than Mid Cap Value Profund. It trades about 0.0 of its total potential returns per unit of risk. Mid Cap Value Profund is currently generating about 0.15 per unit of volatility. If you would invest  8,568  in Mid Cap Value Profund on September 13, 2024 and sell it today you would earn a total of  792.00  from holding Mid Cap Value Profund or generate 9.24% return on investment over 90 days.

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

Natixis Oakmark International  vs.  Mid Cap Value Profund

Natixis Oakmark Inte

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Natixis Oakmark International has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Natixis Oakmark is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mid Cap Value

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mid Cap Value Profund are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Mid Cap may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Natixis Oakmark and Mid Cap

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

The idea behind Natixis Oakmark International and Mid Cap Value Profund 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.