Correlation Between Gabelli Convertible and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Gabelli Convertible 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 Convertible 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 Convertible And and Loomis Sayles Smallmid, you can compare the effects of market volatilities on Gabelli Convertible 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 Convertible with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Convertible and Loomis Sayles.
Diversification Opportunities for Gabelli Convertible and Loomis Sayles
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gabelli and Loomis is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and Loomis Sayles Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Smallmid and Gabelli Convertible 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 Convertible And 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 Smallmid has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and Loomis Sayles go up and down completely randomly.
Pair Corralation between Gabelli Convertible and Loomis Sayles
Considering the 90-day investment horizon Gabelli Convertible And is expected to generate 1.04 times more return on investment than Loomis Sayles. However, Gabelli Convertible is 1.04 times more volatile than Loomis Sayles Smallmid. It trades about 0.11 of its potential returns per unit of risk. Loomis Sayles Smallmid is currently generating about 0.11 per unit of risk. If you would invest 348.00 in Gabelli Convertible And on September 1, 2024 and sell it today you would earn a total of 55.00 from holding Gabelli Convertible And or generate 15.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Convertible And vs. Loomis Sayles Smallmid
Performance |
| Timeline |
| Gabelli Convertible And |
| Loomis Sayles Smallmid |
Gabelli Convertible and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Convertible and Loomis Sayles
The main advantage of trading using opposite Gabelli Convertible and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Convertible 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 Convertible vs. Gabelli Global Small | Gabelli Convertible vs. MFS Investment Grade | Gabelli Convertible vs. Eaton Vance National | Gabelli Convertible vs. GAMCO Natural Resources |
| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Small |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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