Correlation Between Gabelli Global and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Gabelli Global 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 Gabelli Global and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Global Financial and Loomis Sayles Limited, you can compare the effects of market volatilities on Gabelli Global 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 Gabelli Global with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Loomis Sayles.
Diversification Opportunities for Gabelli Global and Loomis Sayles
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gabelli and Loomis is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Financial 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 Gabelli Global 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 Gabelli Global Financial 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 Gabelli Global i.e., Gabelli Global and Loomis Sayles go up and down completely randomly.
Pair Corralation between Gabelli Global and Loomis Sayles
Assuming the 90 days horizon Gabelli Global Financial is expected to generate 5.83 times more return on investment than Loomis Sayles. However, Gabelli Global is 5.83 times more volatile than Loomis Sayles Limited. It trades about 0.1 of its potential returns per unit of risk. Loomis Sayles Limited is currently generating about 0.1 per unit of risk. If you would invest 1,028 in Gabelli Global Financial on September 3, 2024 and sell it today you would earn a total of 601.00 from holding Gabelli Global Financial or generate 58.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Global Financial vs. Loomis Sayles Limited
Performance |
| Timeline |
| Gabelli Global Financial |
| Loomis Sayles Limited |
Gabelli Global and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Loomis Sayles
The main advantage of trading using opposite Gabelli Global and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global 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.| Gabelli Global vs. Ultra Short Fixed Income | Gabelli Global vs. Ms Global Fixed | Gabelli Global vs. Bbh Intermediate Municipal | Gabelli Global vs. Limited Term Tax |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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