Correlation Between Baird Small/mid and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Baird Small/mid 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 Baird Small/mid and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baird Smallmid Cap and Loomis Sayles Inflation, you can compare the effects of market volatilities on Baird Small/mid 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 Baird Small/mid with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baird Small/mid and Loomis Sayles.
Diversification Opportunities for Baird Small/mid and Loomis Sayles
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baird and Loomis is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Baird Smallmid Cap 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 Baird Small/mid 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 Baird Smallmid Cap 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 Baird Small/mid i.e., Baird Small/mid and Loomis Sayles go up and down completely randomly.
Pair Corralation between Baird Small/mid and Loomis Sayles
Assuming the 90 days horizon Baird Smallmid Cap is expected to generate 3.95 times more return on investment than Loomis Sayles. However, Baird Small/mid is 3.95 times more volatile than Loomis Sayles Inflation. It trades about 0.17 of its potential returns per unit of risk. Loomis Sayles Inflation is currently generating about -0.08 per unit of risk. If you would invest 1,572 in Baird Smallmid Cap on August 26, 2024 and sell it today you would earn a total of 188.00 from holding Baird Smallmid Cap or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baird Smallmid Cap vs. Loomis Sayles Inflation
Performance |
| Timeline |
| Baird Smallmid Cap |
| Loomis Sayles Inflation |
Baird Small/mid and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baird Small/mid and Loomis Sayles
The main advantage of trading using opposite Baird Small/mid and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baird Small/mid 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.| Baird Small/mid vs. Baird Aggregate Bond | Baird Small/mid vs. Baird Aggregate Bond | Baird Small/mid vs. Baird Short Term Bond | Baird Small/mid vs. Baird Short Term Bond |
| Loomis Sayles vs. Baird Smallmid Cap | Loomis Sayles vs. Kinetics Small Cap | Loomis Sayles vs. Champlain Small | Loomis Sayles vs. Qs Small Capitalization |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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