Correlation Between Barloworld and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Barloworld 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 Barloworld and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barloworld Ltd ADR and Loomis Sayles Global, you can compare the effects of market volatilities on Barloworld 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 Barloworld with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barloworld and Loomis Sayles.
Diversification Opportunities for Barloworld and Loomis Sayles
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barloworld and Loomis is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Barloworld Ltd ADR and Loomis Sayles Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Global and Barloworld 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 Barloworld Ltd ADR 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 Global has no effect on the direction of Barloworld i.e., Barloworld and Loomis Sayles go up and down completely randomly.
Pair Corralation between Barloworld and Loomis Sayles
Assuming the 90 days horizon Barloworld Ltd ADR is expected to under-perform the Loomis Sayles. In addition to that, Barloworld is 8.63 times more volatile than Loomis Sayles Global. It trades about -0.01 of its total potential returns per unit of risk. Loomis Sayles Global is currently generating about 0.07 per unit of volatility. If you would invest 1,386 in Loomis Sayles Global on September 1, 2024 and sell it today you would earn a total of 44.00 from holding Loomis Sayles Global or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.64% |
| Values | Daily Returns |
Barloworld Ltd ADR vs. Loomis Sayles Global
Performance |
| Timeline |
| Barloworld ADR |
| Loomis Sayles Global |
Barloworld and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barloworld and Loomis Sayles
The main advantage of trading using opposite Barloworld and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barloworld 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.| Barloworld vs. Hertz Global Holdings | Barloworld vs. United Rentals | Barloworld vs. Ryder System | Barloworld vs. Herc Holdings |
| Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. T Rowe Price | Loomis Sayles vs. Westcore Plus Bond | Loomis Sayles vs. Aberdeen Global High |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |