Correlation Between Templeton Global and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Templeton Global 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 Templeton Global and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Global Bond and Loomis Sayles Global, you can compare the effects of market volatilities on Templeton Global 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 Templeton Global with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Loomis Sayles.
Diversification Opportunities for Templeton Global and Loomis Sayles
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Templeton and Loomis is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Bond and Loomis Sayles Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Global and Templeton Global 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 Templeton Global Bond 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 Global has no effect on the direction of Templeton Global i.e., Templeton Global and Loomis Sayles go up and down completely randomly.
Pair Corralation between Templeton Global and Loomis Sayles
Assuming the 90 days horizon Templeton Global Bond is expected to under-perform the Loomis Sayles. In addition to that, Templeton Global is 1.44 times more volatile than Loomis Sayles Global. It trades about -0.02 of its total potential returns per unit of risk. Loomis Sayles Global is currently generating about 0.03 per unit of volatility. If you would invest 1,401 in Loomis Sayles Global on August 26, 2024 and sell it today you would earn a total of 39.00 from holding Loomis Sayles Global or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Global Bond vs. Loomis Sayles Global
Performance |
| Timeline |
| Templeton Global Bond |
| Loomis Sayles Global |
Templeton Global and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Loomis Sayles
The main advantage of trading using opposite Templeton Global and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global 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.| Templeton Global vs. Franklin Mutual Beacon | Templeton Global vs. Templeton Developing Markets | Templeton Global vs. Franklin Mutual Global | Templeton Global vs. Franklin Mutual Global |
| Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. T Rowe Price | Loomis Sayles vs. Westcore Plus Bond | Loomis Sayles vs. Aberdeen Global High |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |