Correlation Between Angel Oak and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Angel Oak 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 Angel Oak and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Ultrashort and Loomis Sayles Bond, you can compare the effects of market volatilities on Angel Oak 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 Angel Oak with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Loomis Sayles.
Diversification Opportunities for Angel Oak and Loomis Sayles
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Angel and Loomis is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Loomis Sayles Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Bond and Angel Oak 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 Angel Oak Ultrashort 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 Bond has no effect on the direction of Angel Oak i.e., Angel Oak and Loomis Sayles go up and down completely randomly.
Pair Corralation between Angel Oak and Loomis Sayles
Assuming the 90 days horizon Angel Oak is expected to generate 2.17 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Angel Oak Ultrashort is 2.48 times less risky than Loomis Sayles. It trades about 0.21 of its potential returns per unit of risk. Loomis Sayles Bond is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,121 in Loomis Sayles Bond on September 13, 2024 and sell it today you would earn a total of 64.00 from holding Loomis Sayles Bond or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. Loomis Sayles Bond
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Loomis Sayles Bond |
Angel Oak and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Loomis Sayles
The main advantage of trading using opposite Angel Oak and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak 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.| Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Doubleline Income Solutions |
| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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