Correlation Between Microsoft and Natixis Oakmark

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

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

Diversification Opportunities for Microsoft and Natixis Oakmark

-0.01

Correlation Coefficient

Microsoft  Natixis Oakmark

Good diversification

The 3 months correlation between Microsoft and Natixis is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Natixis Oakmark Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark Intl and Microsoft 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 Microsoft 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 Intl has no effect on the direction of Microsoft i.e., Microsoft and Natixis Oakmark go up and down completely randomly.

Pair Corralation between Microsoft and Natixis Oakmark

Given the investment horizon of 90 days Microsoft is expected to under-perform the Natixis Oakmark. In addition to that, Microsoft is 1.5 times more volatile than Natixis Oakmark Intl. It trades about -0.08 of its total potential returns per unit of risk. Natixis Oakmark Intl is currently generating about 0.08 per unit of volatility. If you would invest  1,701  in Natixis Oakmark Intl on September 16, 2025 and sell it today you would earn a total of  70.00  from holding Natixis Oakmark Intl or generate 4.12% return on investment over 90 days.

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

Microsoft  vs.  Natixis Oakmark Intl

Microsoft

Risk-Adjusted Performance

Weakest

Over the last 90 days Microsoft has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Microsoft is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Natixis Oakmark Intl

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Natixis Oakmark Intl are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. 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 Microsoft and Natixis Oakmark

The main advantage of trading using opposite Microsoft and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft 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 Microsoft and Natixis Oakmark Intl 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.