Correlation Between Natixis Us and Simt Large

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

By analyzing existing cross correlation between Natixis Equity Opportunities and Simt Large Cap, you can compare the effects of market volatilities on Natixis Us and Simt Large 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 Us with a short position of Simt Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Us and Simt Large.

Diversification Opportunities for Natixis Us and Simt Large

0.97

Correlation Coefficient

Natixis Us  Simt Large

Almost no diversification

The 3 months correlation between Natixis and Simt is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Equity Opportunities and Simt Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Large Cap and Natixis Us 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 Equity Opportunities are associated (or correlated) with Simt Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Large Cap has no effect on the direction of Natixis Us i.e., Natixis Us and Simt Large go up and down completely randomly.

Pair Corralation between Natixis Us and Simt Large

Assuming the 90 days horizon Natixis Us is expected to generate 1.49 times less return on investment than Simt Large. In addition to that, Natixis Us is 1.02 times more volatile than Simt Large Cap. It trades about 0.11 of its total potential returns per unit of risk. Simt Large Cap is currently generating about 0.17 per unit of volatility. If you would invest  2,235  in Simt Large Cap on July 31, 2025 and sell it today you would earn a total of  72.00  from holding Simt Large Cap or generate 3.22% return on investment over 90 days.

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

Natixis Equity Opportunities  vs.  Simt Large Cap

Natixis Equity Oppor

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Natixis Equity Opportunities 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 Us may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Simt Large Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Large Cap are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Simt Large may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Natixis Us and Simt Large

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

The idea behind Natixis Equity Opportunities and Simt Large Cap 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.