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 Bond, 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
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gabelli and Loomis is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Financial 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 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 Bond 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 3.55 times more return on investment than Loomis Sayles. However, Gabelli Global is 3.55 times more volatile than Loomis Sayles Bond. It trades about 0.26 of its potential returns per unit of risk. Loomis Sayles Bond is currently generating about 0.11 per unit of risk. If you would invest 1,571 in Gabelli Global Financial on November 4, 2024 and sell it today you would earn a total of 81.00 from holding Gabelli Global Financial or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Global Financial vs. Loomis Sayles Bond
Performance |
| Timeline |
| Gabelli Global Financial |
| Loomis Sayles Bond |
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. Gmo High Yield | Gabelli Global vs. Rbc Bluebay Global | Gabelli Global vs. One Choice Portfolio | Gabelli Global vs. Goldman Sachs High |
| Loomis Sayles vs. Allianzgi Diversified Income | Loomis Sayles vs. Wilmington Diversified Income | Loomis Sayles vs. Gmo Quality Fund | Loomis Sayles vs. Lord Abbett Diversified |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |