Correlation Between Columbia Balanced and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Columbia Balanced 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 Columbia Balanced and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Balanced Fund and Loomis Sayles Global, you can compare the effects of market volatilities on Columbia Balanced 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 Columbia Balanced with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Balanced and Loomis Sayles.
Diversification Opportunities for Columbia Balanced and Loomis Sayles
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Columbia and Loomis is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Balanced Fund 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 Columbia Balanced 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 Columbia Balanced Fund 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 Columbia Balanced i.e., Columbia Balanced and Loomis Sayles go up and down completely randomly.
Pair Corralation between Columbia Balanced and Loomis Sayles
Assuming the 90 days horizon Columbia Balanced is expected to generate 1.01 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Columbia Balanced Fund is 1.23 times less risky than Loomis Sayles. It trades about 0.41 of its potential returns per unit of risk. Loomis Sayles Global is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 2,624 in Loomis Sayles Global on September 1, 2024 and sell it today you would earn a total of 105.00 from holding Loomis Sayles Global or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Columbia Balanced Fund vs. Loomis Sayles Global
Performance |
| Timeline |
| Columbia Balanced |
| Loomis Sayles Global |
Columbia Balanced and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Balanced and Loomis Sayles
The main advantage of trading using opposite Columbia Balanced and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Balanced 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.| Columbia Balanced vs. Columbia Trarian Core | Columbia Balanced vs. Columbia Dividend Income | Columbia Balanced vs. Columbia Disciplined E | Columbia Balanced vs. Columbia Dividend Opportunity |
| Loomis Sayles vs. First Eagle Global | Loomis Sayles vs. American Balanced Fund | Loomis Sayles vs. Loomis Sayles Strategic | Loomis Sayles vs. Thornburg Investment Income |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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