Correlation Between Calvert Global and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Calvert Global 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 Calvert Global and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and Loomis Sayles Inflation, you can compare the effects of market volatilities on Calvert Global 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 Calvert Global with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Loomis Sayles.
Diversification Opportunities for Calvert Global and Loomis Sayles
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Loomis is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy 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 Calvert Global 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 Calvert Global Energy 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 Calvert Global i.e., Calvert Global and Loomis Sayles go up and down completely randomly.
Pair Corralation between Calvert Global and Loomis Sayles
Assuming the 90 days horizon Calvert Global is expected to generate 10.1 times less return on investment than Loomis Sayles. In addition to that, Calvert Global is 3.21 times more volatile than Loomis Sayles Inflation. It trades about 0.0 of its total potential returns per unit of risk. Loomis Sayles Inflation is currently generating about 0.06 per unit of volatility. If you would invest 904.00 in Loomis Sayles Inflation on August 29, 2024 and sell it today you would earn a total of 60.00 from holding Loomis Sayles Inflation or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. Loomis Sayles Inflation
Performance |
| Timeline |
| Calvert Global Energy |
| Loomis Sayles Inflation |
Calvert Global and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Loomis Sayles
The main advantage of trading using opposite Calvert Global and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global 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.| Calvert Global vs. Firsthand Alternative Energy | Calvert Global vs. Portfolio 21 Global | Calvert Global vs. HUMANA INC | Calvert Global vs. Aquagold International |
| Loomis Sayles vs. Calvert Global Energy | Loomis Sayles vs. Gamco Natural Resources | Loomis Sayles vs. Clearbridge Energy Mlp | Loomis Sayles vs. Fidelity Advisor Energy |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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