Correlation Between Doubleline Total and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Doubleline Total 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 Doubleline Total and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline Total Return and Loomis Sayles Bond, you can compare the effects of market volatilities on Doubleline Total 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 Doubleline Total with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Total and Loomis Sayles.
Diversification Opportunities for Doubleline Total and Loomis Sayles
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Doubleline and Loomis is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Total Return 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 Doubleline Total 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 Doubleline Total Return 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 Doubleline Total i.e., Doubleline Total and Loomis Sayles go up and down completely randomly.
Pair Corralation between Doubleline Total and Loomis Sayles
Assuming the 90 days horizon Doubleline Total is expected to generate 1.88 times less return on investment than Loomis Sayles. In addition to that, Doubleline Total is 1.13 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 1,047 in Loomis Sayles Bond on August 29, 2024 and sell it today you would earn a total of 138.00 from holding Loomis Sayles Bond or generate 13.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline Total Return vs. Loomis Sayles Bond
Performance |
| Timeline |
| Doubleline Total Return |
| Loomis Sayles Bond |
Doubleline Total and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Total and Loomis Sayles
The main advantage of trading using opposite Doubleline Total and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Total 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.| Doubleline Total vs. Osterweis Strategic Income | Doubleline Total vs. Metropolitan West Total | Doubleline Total vs. Doubleline Low Duration | Doubleline Total vs. Akre Focus Fund |
| Loomis Sayles vs. Pimco Income Fund | Loomis Sayles vs. HUMANA INC | Loomis Sayles vs. Aquagold International | Loomis Sayles vs. Barloworld Ltd ADR |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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