Correlation Between Wasatch Large and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Wasatch Large 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 Wasatch Large and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wasatch Large Cap and Loomis Sayles Bond, you can compare the effects of market volatilities on Wasatch Large 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 Wasatch Large with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasatch Large and Loomis Sayles.
Diversification Opportunities for Wasatch Large and Loomis Sayles
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wasatch and Loomis is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Wasatch Large Cap 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 Wasatch Large 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 Wasatch Large 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 Bond has no effect on the direction of Wasatch Large i.e., Wasatch Large and Loomis Sayles go up and down completely randomly.
Pair Corralation between Wasatch Large and Loomis Sayles
Assuming the 90 days horizon Wasatch Large Cap is expected to generate 3.29 times more return on investment than Loomis Sayles. However, Wasatch Large is 3.29 times more volatile than Loomis Sayles Bond. It trades about 0.07 of its potential returns per unit of risk. Loomis Sayles Bond is currently generating about -0.02 per unit of risk. If you would invest 995.00 in Wasatch Large Cap on August 25, 2024 and sell it today you would earn a total of 8.00 from holding Wasatch Large Cap or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wasatch Large Cap vs. Loomis Sayles Bond
Performance |
| Timeline |
| Wasatch Large Cap |
| Loomis Sayles Bond |
Wasatch Large and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasatch Large and Loomis Sayles
The main advantage of trading using opposite Wasatch Large and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasatch Large 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.| Wasatch Large vs. Large Cap Fund | Wasatch Large vs. Equity Series Class | Wasatch Large vs. Westcore Plus Bond | Wasatch Large vs. Marsico 21st Century |
| Loomis Sayles vs. Metropolitan West Total | Loomis Sayles vs. Harbor Bond Fund | Loomis Sayles vs. Doubleline Total Return | Loomis Sayles vs. Fidelity Advisor Floating |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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