Correlation Between Artisan High and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Artisan 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 Artisan 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 Artisan High Income and Loomis Sayles Bond, you can compare the effects of market volatilities on Artisan 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 Artisan High with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan High and Loomis Sayles.
Diversification Opportunities for Artisan High and Loomis Sayles
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Artisan and Loomis is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Artisan High Income 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 Artisan 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 Artisan 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 Bond has no effect on the direction of Artisan High i.e., Artisan High and Loomis Sayles go up and down completely randomly.
Pair Corralation between Artisan High and Loomis Sayles
Assuming the 90 days horizon Artisan High Income is expected to generate 0.85 times more return on investment than Loomis Sayles. However, Artisan High Income is 1.18 times less risky than Loomis Sayles. It trades about 0.14 of its potential returns per unit of risk. Loomis Sayles Bond is currently generating about 0.08 per unit of risk. If you would invest 747.00 in Artisan High Income on August 30, 2024 and sell it today you would earn a total of 170.00 from holding Artisan High Income or generate 22.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan High Income vs. Loomis Sayles Bond
Performance |
| Timeline |
| Artisan High Income |
| Loomis Sayles Bond |
Artisan High and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan High and Loomis Sayles
The main advantage of trading using opposite Artisan High and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan 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.| Artisan High vs. Vanguard High Yield Corporate | Artisan High vs. Vanguard High Yield Porate | Artisan High vs. HUMANA INC | Artisan High vs. Aquagold International |
| Loomis Sayles vs. Mid Cap Value Profund | Loomis Sayles vs. Boston Partners Small | Loomis Sayles vs. Hennessy Nerstone Mid | Loomis Sayles vs. Mutual Of America |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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