Correlation Between Auer Growth and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Auer Growth 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 Auer Growth and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auer Growth Fund and Loomis Sayles Limited, you can compare the effects of market volatilities on Auer Growth 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 Auer Growth with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Loomis Sayles.
Diversification Opportunities for Auer Growth and Loomis Sayles
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Auer and Loomis is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Loomis Sayles Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Limited and Auer Growth 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 Auer Growth Fund 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 Limited has no effect on the direction of Auer Growth i.e., Auer Growth and Loomis Sayles go up and down completely randomly.
Pair Corralation between Auer Growth and Loomis Sayles
Assuming the 90 days horizon Auer Growth is expected to generate 1.06 times less return on investment than Loomis Sayles. In addition to that, Auer Growth is 8.69 times more volatile than Loomis Sayles Limited. It trades about 0.01 of its total potential returns per unit of risk. Loomis Sayles Limited is currently generating about 0.11 per unit of volatility. If you would invest 999.00 in Loomis Sayles Limited on December 4, 2024 and sell it today you would earn a total of 88.00 from holding Loomis Sayles Limited or generate 8.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auer Growth Fund vs. Loomis Sayles Limited
Performance |
| Timeline |
| Auer Growth Fund |
| Loomis Sayles Limited |
Auer Growth and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Loomis Sayles
The main advantage of trading using opposite Auer Growth and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth 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.| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Oberweis Small Cap Opportunities |
| Loomis Sayles vs. Tax Managed International Equity | Loomis Sayles vs. T Rowe Price | Loomis Sayles vs. T Rowe Price | Loomis Sayles vs. Doubleline Emerging Markets |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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