Correlation Between Fidelity Sai and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai 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 Fidelity Sai and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Sai Convertible and Loomis Sayles Limited, you can compare the effects of market volatilities on Fidelity Sai 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 Fidelity Sai with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Loomis Sayles.
Diversification Opportunities for Fidelity Sai and Loomis Sayles
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Loomis is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible 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 Fidelity Sai 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 Fidelity Sai Convertible 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 Fidelity Sai i.e., Fidelity Sai and Loomis Sayles go up and down completely randomly.
Pair Corralation between Fidelity Sai and Loomis Sayles
Assuming the 90 days horizon Fidelity Sai Convertible is expected to generate 0.96 times more return on investment than Loomis Sayles. However, Fidelity Sai Convertible is 1.05 times less risky than Loomis Sayles. It trades about 0.29 of its potential returns per unit of risk. Loomis Sayles Limited is currently generating about 0.14 per unit of risk. If you would invest 991.00 in Fidelity Sai Convertible on September 3, 2024 and sell it today you would earn a total of 105.00 from holding Fidelity Sai Convertible or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Loomis Sayles Limited
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Loomis Sayles Limited |
Fidelity Sai and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Loomis Sayles
The main advantage of trading using opposite Fidelity Sai and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai 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.| Fidelity Sai vs. Calamos Market Neutral | Fidelity Sai vs. Calamos Market Neutral | Fidelity Sai vs. Calamos Market Neutral | Fidelity Sai vs. Calamos Market Neutral |
| Loomis Sayles vs. Shelton Emerging Markets | Loomis Sayles vs. Fundvantage Trust | Loomis Sayles vs. Locorr Market Trend | Loomis Sayles vs. The 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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