Correlation Between Causeway Emerging and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Causeway Emerging 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 Causeway Emerging and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Causeway Emerging Markets and Loomis Sayles Growth, you can compare the effects of market volatilities on Causeway Emerging 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 Causeway Emerging with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Causeway Emerging and Loomis Sayles.
Diversification Opportunities for Causeway Emerging and Loomis Sayles
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Causeway and Loomis is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Causeway Emerging Markets and Loomis Sayles Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Growth and Causeway Emerging 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 Causeway Emerging Markets 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 Growth has no effect on the direction of Causeway Emerging i.e., Causeway Emerging and Loomis Sayles go up and down completely randomly.
Pair Corralation between Causeway Emerging and Loomis Sayles
Assuming the 90 days horizon Causeway Emerging Markets is expected to generate 0.84 times more return on investment than Loomis Sayles. However, Causeway Emerging Markets is 1.19 times less risky than Loomis Sayles. It trades about 0.19 of its potential returns per unit of risk. Loomis Sayles Growth is currently generating about 0.12 per unit of risk. If you would invest 1,105 in Causeway Emerging Markets on November 22, 2024 and sell it today you would earn a total of 38.00 from holding Causeway Emerging Markets or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Causeway Emerging Markets vs. Loomis Sayles Growth
Performance |
| Timeline |
| Causeway Emerging Markets |
| Loomis Sayles Growth |
Causeway Emerging and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Causeway Emerging and Loomis Sayles
The main advantage of trading using opposite Causeway Emerging and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Causeway Emerging 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.| Causeway Emerging vs. Small Pany Growth | Causeway Emerging vs. Needham Small Cap | Causeway Emerging vs. Lebenthal Lisanti Small | Causeway Emerging vs. Cardinal Small Cap |
| Loomis Sayles vs. Diamond Hill Large | Loomis Sayles vs. Loomis Sayles Growth | Loomis Sayles vs. Loomis Sayles Growth | Loomis Sayles vs. Natixis Equity Opportunities |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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