Correlation Between Eic Value and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Eic Value 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 Eic Value and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Loomis Sayles Limited, you can compare the effects of market volatilities on Eic Value 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 Eic Value with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Loomis Sayles.
Diversification Opportunities for Eic Value and Loomis Sayles
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eic and Loomis is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Loomis Sayles Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Limited and Eic Value 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 Eic Value Fund 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 Limited has no effect on the direction of Eic Value i.e., Eic Value and Loomis Sayles go up and down completely randomly.
Pair Corralation between Eic Value and Loomis Sayles
Assuming the 90 days horizon Eic Value Fund is expected to generate 4.79 times more return on investment than Loomis Sayles. However, Eic Value is 4.79 times more volatile than Loomis Sayles Limited. It trades about 0.07 of its potential returns per unit of risk. Loomis Sayles Limited is currently generating about 0.11 per unit of risk. If you would invest 1,377 in Eic Value Fund on December 4, 2024 and sell it today you would earn a total of 388.00 from holding Eic Value Fund or generate 28.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Loomis Sayles Limited
Performance |
| Timeline |
| Eic Value Fund |
| Loomis Sayles Limited |
Eic Value and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Loomis Sayles
The main advantage of trading using opposite Eic Value and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value 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.| Eic Value vs. Prudential Financial Services | Eic Value vs. Angel Oak Financial | Eic Value vs. Putnam Global Financials | Eic Value vs. Mesirow Financial Small |
| Loomis Sayles vs. Tax Managed International Equity | Loomis Sayles vs. T Rowe Price | Loomis Sayles vs. T Rowe Price | Loomis Sayles vs. Doubleline Emerging Markets |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |