Correlation Between Bbh Intermediate and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate 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 Bbh Intermediate and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Loomis Sayles Investment, you can compare the effects of market volatilities on Bbh Intermediate 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 Bbh Intermediate with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Loomis Sayles.
Diversification Opportunities for Bbh Intermediate and Loomis Sayles
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bbh and Loomis is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Loomis Sayles Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Investment and Bbh Intermediate 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 Bbh Intermediate Municipal 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 Investment has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Loomis Sayles go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Loomis Sayles
Assuming the 90 days horizon Bbh Intermediate is expected to generate 1.01 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 2.08 times less risky than Loomis Sayles. It trades about 0.1 of its potential returns per unit of risk. Loomis Sayles Investment is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 897.00 in Loomis Sayles Investment on September 13, 2024 and sell it today you would earn a total of 82.00 from holding Loomis Sayles Investment or generate 9.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Loomis Sayles Investment
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Loomis Sayles Investment |
Bbh Intermediate and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Loomis Sayles
The main advantage of trading using opposite Bbh Intermediate and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate 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.| Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Partner Fund | Bbh Intermediate vs. Bbh Intermediate Municipal |
| Loomis Sayles vs. Pace Municipal Fixed | Loomis Sayles vs. Nuveen Minnesota Municipal | Loomis Sayles vs. Transamerica Intermediate Muni | Loomis Sayles vs. Bbh Intermediate Municipal |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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