Correlation Between Columbia Porate and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Columbia Porate 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 Porate 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 Porate Income and Loomis Sayles Bond, you can compare the effects of market volatilities on Columbia Porate 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 Porate with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Porate and Loomis Sayles.
Diversification Opportunities for Columbia Porate and Loomis Sayles
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Columbia and Loomis is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Porate Income and Loomis Sayles Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Bond and Columbia Porate 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 Porate Income 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 Bond has no effect on the direction of Columbia Porate i.e., Columbia Porate and Loomis Sayles go up and down completely randomly.
Pair Corralation between Columbia Porate and Loomis Sayles
Assuming the 90 days horizon Columbia Porate is expected to generate 1.93 times less return on investment than Loomis Sayles. In addition to that, Columbia Porate is 1.23 times more volatile than Loomis Sayles Bond. It trades about 0.03 of its total potential returns per unit of risk. Loomis Sayles Bond is currently generating about 0.07 per unit of volatility. If you would invest 1,045 in Loomis Sayles Bond on August 26, 2024 and sell it today you would earn a total of 144.00 from holding Loomis Sayles Bond or generate 13.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 31.99% |
| Values | Daily Returns |
Columbia Porate Income vs. Loomis Sayles Bond
Performance |
| Timeline |
| Columbia Porate Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Loomis Sayles Bond |
Columbia Porate and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Porate and Loomis Sayles
The main advantage of trading using opposite Columbia Porate and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Porate 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 Porate vs. Short Intermediate Bond Fund | Columbia Porate vs. Ultra Short Term Fixed | Columbia Porate vs. Astor Longshort Fund | Columbia Porate vs. Barings Active Short |
| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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