Correlation Between Ab International and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Ab International and Loomis Sayles 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 Ab International and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab International Value and Loomis Sayles Growth, you can compare the effects of market volatilities on Ab International and Loomis Sayles 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 Ab International with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab International and Loomis Sayles.
Diversification Opportunities for Ab International and Loomis Sayles
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ABIAX and Loomis is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ab International Value and Loomis Sayles Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Growth and Ab International 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 Ab International Value are associated (or correlated) with Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Growth has no effect on the direction of Ab International i.e., Ab International and Loomis Sayles go up and down completely randomly.
Pair Corralation between Ab International and Loomis Sayles
Assuming the 90 days horizon Ab International is expected to generate 6.95 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Ab International Value is 1.23 times less risky than Loomis Sayles. It trades about 0.02 of its potential returns per unit of risk. Loomis Sayles Growth is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,171 in Loomis Sayles Growth on September 1, 2024 and sell it today you would earn a total of 930.00 from holding Loomis Sayles Growth or generate 42.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab International Value vs. Loomis Sayles Growth
Performance |
| Timeline |
| Ab International Value |
| Loomis Sayles Growth |
Ab International and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab International and Loomis Sayles
The main advantage of trading using opposite Ab International and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab International position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| Ab International vs. Goldman Sachs Technology | Ab International vs. Pgim Jennison Technology | Ab International vs. Technology Ultrasector Profund | Ab International vs. Science Technology Fund |
| Loomis Sayles vs. American Mutual Fund | Loomis Sayles vs. Metropolitan West Total | Loomis Sayles vs. John Hancock Disciplined | Loomis Sayles vs. Edgewood Growth Fund |
Check out your portfolio center.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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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