Correlation Between Natixis Oakmark and Mirova International

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

By analyzing existing cross correlation between Natixis Oakmark and Mirova International Sustainable, you can compare the effects of market volatilities on Natixis Oakmark and Mirova 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 Mirova International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Oakmark and Mirova International.

Diversification Opportunities for Natixis Oakmark and Mirova International

-0.8

Correlation Coefficient

Natixis Oakmark  Mirova International

Pay attention - limited upside

The 3 months correlation between Natixis and Mirova is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Oakmark and Mirova International Sustainab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirova 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 are associated (or correlated) with Mirova International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirova International has no effect on the direction of Natixis Oakmark i.e., Natixis Oakmark and Mirova International go up and down completely randomly.

Pair Corralation between Natixis Oakmark and Mirova International

Assuming the 90 days horizon Natixis Oakmark is expected to under-perform the Mirova International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Natixis Oakmark is 1.01 times less risky than Mirova International. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Mirova International Sustainable is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  1,223  in Mirova International Sustainable on September 14, 2024 and sell it today you would earn a total of  30.00  from holding Mirova International Sustainable or generate 2.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

Natixis Oakmark  vs.  Mirova International Sustainab

Natixis Oakmark

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Natixis Oakmark are ranked lower than 12 (%) 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 January 2025.

Mirova International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mirova International Sustainable has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Mirova International 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 Mirova International

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

The idea behind Natixis Oakmark and Mirova International Sustainable 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.