Correlation Between Natixis Oakmark and Nuveen Strategic

Can any of the company-specific risk be diversified away by investing in both Natixis Oakmark and Nuveen Strategic 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 Nuveen Strategic 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 Nuveen Strategic Municipal, you can compare the effects of market volatilities on Natixis Oakmark and Nuveen Strategic 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 Nuveen Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Oakmark and Nuveen Strategic.

Diversification Opportunities for Natixis Oakmark and Nuveen Strategic

0.62

Correlation Coefficient

Natixis Oakmark  Nuveen Strategic

Poor diversification

The 3 months correlation between Natixis and Nuveen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Oakmark International and Nuveen Strategic Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Strategic Mun 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 Nuveen Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Strategic Mun has no effect on the direction of Natixis Oakmark i.e., Natixis Oakmark and Nuveen Strategic go up and down completely randomly.

Pair Corralation between Natixis Oakmark and Nuveen Strategic

Assuming the 90 days horizon Natixis Oakmark International is expected to generate 4.52 times more return on investment than Nuveen Strategic. However, Natixis Oakmark is 4.52 times more volatile than Nuveen Strategic Municipal. It trades about 0.18 of its potential returns per unit of risk. Nuveen Strategic Municipal is currently generating about 0.09 per unit of risk. If you would invest  1,339  in Natixis Oakmark International on December 21, 2024 and sell it today you would earn a total of  160.00  from holding Natixis Oakmark International or generate 11.95% return on investment over 90 days.

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

Natixis Oakmark International  vs.  Nuveen Strategic Municipal

Natixis Oakmark Inte

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Natixis Oakmark International are ranked lower than 14 (%) 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.

Nuveen Strategic Mun

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Strategic Municipal are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Nuveen Strategic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Natixis Oakmark and Nuveen Strategic

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

The idea behind Natixis Oakmark International and Nuveen Strategic Municipal 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.