Correlation Between Natixis Sustainable and Blrc Sgy

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

By analyzing existing cross correlation between Natixis Sustainable Future and Blrc Sgy Mnp, you can compare the effects of market volatilities on Natixis Sustainable and Blrc Sgy 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 Sustainable with a short position of Blrc Sgy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Sustainable and Blrc Sgy.

Diversification Opportunities for Natixis Sustainable and Blrc Sgy

-0.33

Correlation Coefficient

Natixis Sustainable  Blrc Sgy

Very good diversification

The 3 months correlation between Natixis and Blrc is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Sustainable Future and Blrc Sgy Mnp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blrc Sgy Mnp and Natixis Sustainable 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 Sustainable Future are associated (or correlated) with Blrc Sgy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blrc Sgy Mnp has no effect on the direction of Natixis Sustainable i.e., Natixis Sustainable and Blrc Sgy go up and down completely randomly.

Pair Corralation between Natixis Sustainable and Blrc Sgy

Assuming the 90 days horizon Natixis Sustainable Future is expected to generate 2.22 times more return on investment than Blrc Sgy. However, Natixis Sustainable is 2.22 times more volatile than Blrc Sgy Mnp. It trades about 0.16 of its potential returns per unit of risk. Blrc Sgy Mnp is currently generating about 0.03 per unit of risk. If you would invest  1,255  in Natixis Sustainable Future on September 4, 2024 and sell it today you would earn a total of  83.00  from holding Natixis Sustainable Future or generate 6.61% return on investment over 90 days.

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

Natixis Sustainable Future  vs.  Blrc Sgy Mnp

Natixis Sustainable

Risk-Adjusted Performance

12 of 100

Good

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

Blrc Sgy Mnp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Blrc Sgy Mnp are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Blrc Sgy 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 Sustainable and Blrc Sgy

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

The idea behind Natixis Sustainable Future and Blrc Sgy Mnp 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.