Correlation Between Federated Mdt and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Federated Mdt 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 Federated Mdt and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Mdt Large and Loomis Sayles Limited, you can compare the effects of market volatilities on Federated Mdt 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 Federated Mdt with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Mdt and Loomis Sayles.
Diversification Opportunities for Federated Mdt and Loomis Sayles
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Federated and Loomis is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Federated Mdt Large 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 Federated Mdt 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 Federated Mdt Large 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 Federated Mdt i.e., Federated Mdt and Loomis Sayles go up and down completely randomly.
Pair Corralation between Federated Mdt and Loomis Sayles
Assuming the 90 days horizon Federated Mdt Large is expected to under-perform the Loomis Sayles. In addition to that, Federated Mdt is 6.53 times more volatile than Loomis Sayles Limited. It trades about -0.12 of its total potential returns per unit of risk. Loomis Sayles Limited is currently generating about 0.19 per unit of volatility. If you would invest 1,078 in Loomis Sayles Limited on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Loomis Sayles Limited or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Mdt Large vs. Loomis Sayles Limited
Performance |
| Timeline |
| Federated Mdt Large |
| Loomis Sayles Limited |
Federated Mdt and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Mdt and Loomis Sayles
The main advantage of trading using opposite Federated Mdt and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Mdt 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.| Federated Mdt vs. Federated Max Cap Index | Federated Mdt vs. Federated Mdt Mid Cap | Federated Mdt vs. Federated Max Cap Index | Federated Mdt vs. Federated Global Allocation |
| Loomis Sayles vs. Loomis Sayles Limited | Loomis Sayles vs. Loomis Sayles Investment | Loomis Sayles vs. Loomis Sayles Investment | Loomis Sayles vs. Loomis Sayles Global |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |