Correlation Between Rbb Fund and Natixis Oakmark

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

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

Diversification Opportunities for Rbb Fund and Natixis Oakmark

0.2

Correlation Coefficient

Rbb Fund  Natixis Oakmark

Modest diversification

The 3 months correlation between Rbb and Natixis is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Rbb Fund Trust and Natixis Oakmark International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark Inte and Rbb Fund 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 Rbb Fund Trust are associated (or correlated) with Natixis Oakmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Oakmark Inte has no effect on the direction of Rbb Fund i.e., Rbb Fund and Natixis Oakmark go up and down completely randomly.

Pair Corralation between Rbb Fund and Natixis Oakmark

Assuming the 90 days horizon Rbb Fund is expected to generate 1.79 times less return on investment than Natixis Oakmark. But when comparing it to its historical volatility, Rbb Fund Trust is 1.89 times less risky than Natixis Oakmark. It trades about 0.22 of its potential returns per unit of risk. Natixis Oakmark International is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1,353  in Natixis Oakmark International on October 26, 2024 and sell it today you would earn a total of  53.00  from holding Natixis Oakmark International or generate 3.92% return on investment over 90 days.

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

Rbb Fund Trust  vs.  Natixis Oakmark International

Rbb Fund Trust

Risk-Adjusted Performance

0 of 100

Very Weak

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

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.

Pair Trading with Rbb Fund and Natixis Oakmark

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

The idea behind Rbb Fund Trust and Natixis Oakmark International 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.