Correlation Between Natixis Oakmark and Oakmark International

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

Diversification Opportunities for Natixis Oakmark and Oakmark International

0.94

Correlation Coefficient

Natixis Oakmark  Oakmark International

Almost no diversification

The 3 months correlation between Natixis and Oakmark is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Oakmark International and Oakmark International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International 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 Oakmark International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark International has no effect on the direction of Natixis Oakmark i.e., Natixis Oakmark and Oakmark International go up and down completely randomly.

Pair Corralation between Natixis Oakmark and Oakmark International

Assuming the 90 days horizon Natixis Oakmark is expected to generate 1.01 times less return on investment than Oakmark International. But when comparing it to its historical volatility, Natixis Oakmark International is 1.02 times less risky than Oakmark International. It trades about 0.15 of its potential returns per unit of risk. Oakmark International Fund is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  2,491  in Oakmark International Fund on December 30, 2024 and sell it today you would earn a total of  245.00  from holding Oakmark International Fund or generate 9.84% return on investment over 90 days.

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

Natixis Oakmark International  vs.  Oakmark International Fund

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 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.

Oakmark International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Oakmark International Fund are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Oakmark International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Natixis Oakmark and Oakmark International

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

The idea behind Natixis Oakmark International and Oakmark International Fund 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.

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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.