Correlation Between Fidelity Advisor and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor 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 Advisor 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 Advisor Strategic and Loomis Sayles Bond, you can compare the effects of market volatilities on Fidelity Advisor 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 Advisor with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Loomis Sayles.
Diversification Opportunities for Fidelity Advisor and Loomis Sayles
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Loomis is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Strategic 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 Fidelity Advisor 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 Advisor Strategic 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 Fidelity Advisor i.e., Fidelity Advisor and Loomis Sayles go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Loomis Sayles
Assuming the 90 days horizon Fidelity Advisor is expected to generate 1.22 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Fidelity Advisor Strategic is 1.23 times less risky than Loomis Sayles. It trades about 0.19 of its potential returns per unit of risk. Loomis Sayles Bond is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,118 in Loomis Sayles Bond on August 29, 2024 and sell it today you would earn a total of 72.00 from holding Loomis Sayles Bond or generate 6.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Strategic vs. Loomis Sayles Bond
Performance |
| Timeline |
| Fidelity Advisor Str |
| Loomis Sayles Bond |
Fidelity Advisor and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Loomis Sayles
The main advantage of trading using opposite Fidelity Advisor and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor 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 Advisor vs. Pimco Income Fund | Fidelity Advisor vs. HUMANA INC | Fidelity Advisor vs. Aquagold International | Fidelity Advisor vs. Barloworld Ltd ADR |
| Loomis Sayles vs. Ab Bond Inflation | Loomis Sayles vs. Black Oak Emerging | Loomis Sayles vs. Vanguard Emerging Markets | Loomis Sayles vs. Commodities Strategy Fund |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |