Correlation Between Natixis Us and Gateway Fund

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Can any of the company-specific risk be diversified away by investing in both Natixis Us and Gateway Fund 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 Gateway Fund 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 Gateway Fund Class, you can compare the effects of market volatilities on Natixis Us and Gateway Fund 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 Gateway Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Us and Gateway Fund.

Diversification Opportunities for Natixis Us and Gateway Fund

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Natixis and Gateway is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Equity Opportunities and Gateway Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Fund Class 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 Gateway Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Fund Class has no effect on the direction of Natixis Us i.e., Natixis Us and Gateway Fund go up and down completely randomly.

Pair Corralation between Natixis Us and Gateway Fund

Assuming the 90 days horizon Natixis Equity Opportunities is expected to generate 1.83 times more return on investment than Gateway Fund. However, Natixis Us is 1.83 times more volatile than Gateway Fund Class. It trades about 0.08 of its potential returns per unit of risk. Gateway Fund Class is currently generating about 0.09 per unit of risk. If you would invest  3,191  in Natixis Equity Opportunities on August 22, 2025 and sell it today you would earn a total of  1,505  from holding Natixis Equity Opportunities or generate 47.16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Natixis Equity Opportunities  vs.  Gateway Fund Class

 Performance 
       Timeline  
Natixis Equity Oppor 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Over the last 90 days Natixis Equity Opportunities has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Natixis Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Gateway Fund Class 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Gateway Fund Class are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Gateway Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Natixis Us and Gateway Fund Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Natixis Us and Gateway Fund

The main advantage of trading using opposite Natixis Us and Gateway Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Us position performs unexpectedly, Gateway Fund 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 Gateway Fund will offset losses from the drop in Gateway Fund's long position.
The idea behind Natixis Equity Opportunities and Gateway Fund Class 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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