Correlation Between Blackrock High and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Blackrock 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 Blackrock 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 Blackrock High Yield and Loomis Sayles Institutional, you can compare the effects of market volatilities on Blackrock 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 Blackrock High with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock High and Loomis Sayles.
Diversification Opportunities for Blackrock High and Loomis Sayles
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackrock and Loomis is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock High Yield and Loomis Sayles Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Instit and Blackrock 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 Blackrock High Yield 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 Instit has no effect on the direction of Blackrock High i.e., Blackrock High and Loomis Sayles go up and down completely randomly.
Pair Corralation between Blackrock High and Loomis Sayles
Assuming the 90 days horizon Blackrock High is expected to generate 1.45 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Blackrock High Yield is 1.04 times less risky than Loomis Sayles. It trades about 0.22 of its potential returns per unit of risk. Loomis Sayles Institutional is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 556.00 in Loomis Sayles Institutional on September 1, 2024 and sell it today you would earn a total of 46.00 from holding Loomis Sayles Institutional or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Blackrock High Yield vs. Loomis Sayles Institutional
Performance |
| Timeline |
| Blackrock High Yield |
| Loomis Sayles Instit |
Blackrock High and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock High and Loomis Sayles
The main advantage of trading using opposite Blackrock High and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock 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.| Blackrock High vs. Blackrock California Municipal | Blackrock High vs. Blackrock Balanced Capital | Blackrock High vs. Blackrock Eurofund Class | Blackrock High vs. Blackrock Funds |
| Loomis Sayles vs. International Investors Gold | Loomis Sayles vs. Vy Goldman Sachs | Loomis Sayles vs. Global Gold Fund | Loomis Sayles vs. Oppenheimer Gold Special |
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.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |