Correlation Between Ab High and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Ab High 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 High 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 High Income and Loomis Sayles Strategic, you can compare the effects of market volatilities on Ab High 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 High with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab High and Loomis Sayles.
Diversification Opportunities for Ab High and Loomis Sayles
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AGDIX and Loomis is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and Loomis Sayles Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Strategic and Ab High 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 High Income 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 Strategic has no effect on the direction of Ab High i.e., Ab High and Loomis Sayles go up and down completely randomly.
Pair Corralation between Ab High and Loomis Sayles
Assuming the 90 days horizon Ab High Income is expected to generate 0.77 times more return on investment than Loomis Sayles. However, Ab High Income is 1.29 times less risky than Loomis Sayles. It trades about 0.23 of its potential returns per unit of risk. Loomis Sayles Strategic is currently generating about 0.14 per unit of risk. If you would invest 669.00 in Ab High Income on November 3, 2024 and sell it today you would earn a total of 37.00 from holding Ab High Income or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab High Income vs. Loomis Sayles Strategic
Performance |
| Timeline |
| Ab High Income |
| Loomis Sayles Strategic |
Ab High and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab High and Loomis Sayles
The main advantage of trading using opposite Ab High and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High 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 High vs. Aig Government Money | Ab High vs. Angel Oak Financial | Ab High vs. Voya Government Money | Ab High vs. Schwab Government Money |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |