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 Treasury and Loomis Sayles Growth, 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
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidelity and Loomis is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Treasury and Loomis Sayles Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Growth 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 Treasury 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 Growth 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 is expected to generate 10.3 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Fidelity Sai Treasury is 3.33 times less risky than Loomis Sayles. It trades about 0.06 of its potential returns per unit of risk. Loomis Sayles Growth is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,629 in Loomis Sayles Growth on August 31, 2024 and sell it today you would earn a total of 126.00 from holding Loomis Sayles Growth or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Treasury vs. Loomis Sayles Growth
Performance |
| Timeline |
| Fidelity Sai Treasury |
| Loomis Sayles Growth |
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. Oppenheimer International Diversified | Fidelity Sai vs. Massmutual Premier Diversified | Fidelity Sai vs. Aqr Diversified Arbitrage | Fidelity Sai vs. Western Asset Diversified |
| Loomis Sayles vs. Diamond Hill Large | Loomis Sayles vs. Loomis Sayles Growth | Loomis Sayles vs. Loomis Sayles Growth | Loomis Sayles vs. Natixis Equity Opportunities |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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