Correlation Between Us Small and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Us Small 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 Us Small and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Us Small Cap and Loomis Sayles Small, you can compare the effects of market volatilities on Us Small 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 Us Small with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Small and Loomis Sayles.
Diversification Opportunities for Us Small and Loomis Sayles
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between DFSTX and Loomis is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Us Small Cap and Loomis Sayles Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Small and Us Small 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 Us Small 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 Small has no effect on the direction of Us Small i.e., Us Small and Loomis Sayles go up and down completely randomly.
Pair Corralation between Us Small and Loomis Sayles
Assuming the 90 days horizon Us Small Cap is expected to generate 1.01 times more return on investment than Loomis Sayles. However, Us Small is 1.01 times more volatile than Loomis Sayles Small. It trades about 0.1 of its potential returns per unit of risk. Loomis Sayles Small is currently generating about 0.08 per unit of risk. If you would invest 4,534 in Us Small Cap on September 1, 2024 and sell it today you would earn a total of 766.00 from holding Us Small Cap or generate 16.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Us Small Cap vs. Loomis Sayles Small
Performance |
| Timeline |
| Us Small Cap |
| Loomis Sayles Small |
Us Small and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Us Small and Loomis Sayles
The main advantage of trading using opposite Us Small and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us Small 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.| Us Small vs. Alliancebernstein Global High | Us Small vs. Lgm Risk Managed | Us Small vs. T Rowe Price | Us Small vs. California High Yield Municipal |
| Loomis Sayles vs. Ssga International Stock | Loomis Sayles vs. Northern Small Cap | Loomis Sayles vs. American Beacon Large |
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..
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |