Correlation Between Ab Municipal and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Ab Municipal 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 Municipal 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 Municipal Bond and Loomis Sayles Inflation, you can compare the effects of market volatilities on Ab Municipal 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 Municipal with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Municipal and Loomis Sayles.
Diversification Opportunities for Ab Municipal and Loomis Sayles
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AUNYX and Loomis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ab Municipal Bond and Loomis Sayles Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Inflation and Ab Municipal 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 Municipal Bond 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 Inflation has no effect on the direction of Ab Municipal i.e., Ab Municipal and Loomis Sayles go up and down completely randomly.
Pair Corralation between Ab Municipal and Loomis Sayles
Assuming the 90 days horizon Ab Municipal Bond is expected to generate 0.69 times more return on investment than Loomis Sayles. However, Ab Municipal Bond is 1.46 times less risky than Loomis Sayles. It trades about 0.23 of its potential returns per unit of risk. Loomis Sayles Inflation is currently generating about -0.06 per unit of risk. If you would invest 1,073 in Ab Municipal Bond on August 28, 2024 and sell it today you would earn a total of 8.00 from holding Ab Municipal Bond or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Municipal Bond vs. Loomis Sayles Inflation
Performance |
| Timeline |
| Ab Municipal Bond |
| Loomis Sayles Inflation |
Ab Municipal and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Municipal and Loomis Sayles
The main advantage of trading using opposite Ab Municipal and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Municipal 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 Municipal vs. Ab Global E | Ab Municipal vs. Ab Global E | Ab Municipal vs. Ab Minnesota Portfolio | Ab Municipal vs. Ab All Market |
| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Small |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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