Correlation Between Falcon Focus and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Falcon Focus 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 Falcon Focus and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Focus Scv and Loomis Sayles Smallmid, you can compare the effects of market volatilities on Falcon Focus 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 Falcon Focus with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Focus and Loomis Sayles.
Diversification Opportunities for Falcon Focus and Loomis Sayles
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Falcon and Loomis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Focus Scv and Loomis Sayles Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Smallmid and Falcon Focus 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 Falcon Focus Scv 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 Smallmid has no effect on the direction of Falcon Focus i.e., Falcon Focus and Loomis Sayles go up and down completely randomly.
Pair Corralation between Falcon Focus and Loomis Sayles
Assuming the 90 days horizon Falcon Focus Scv is expected to generate 0.79 times more return on investment than Loomis Sayles. However, Falcon Focus Scv is 1.26 times less risky than Loomis Sayles. It trades about 0.1 of its potential returns per unit of risk. Loomis Sayles Smallmid is currently generating about 0.06 per unit of risk. If you would invest 918.00 in Falcon Focus Scv on September 5, 2024 and sell it today you would earn a total of 397.00 from holding Falcon Focus Scv or generate 43.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Falcon Focus Scv vs. Loomis Sayles Smallmid
Performance |
| Timeline |
| Falcon Focus Scv |
| Loomis Sayles Smallmid |
Falcon Focus and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Focus and Loomis Sayles
The main advantage of trading using opposite Falcon Focus and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Focus 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.| Falcon Focus vs. T Rowe Price | Falcon Focus vs. Pace Municipal Fixed | Falcon Focus vs. Bbh Intermediate Municipal | Falcon Focus vs. Vanguard California Long Term |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |