Correlation Between Growth Fund and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Growth Fund 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 Growth Fund and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Loomis Sayles Growth, you can compare the effects of market volatilities on Growth Fund 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 Growth Fund with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Loomis Sayles.
Diversification Opportunities for Growth Fund and Loomis Sayles
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Growth and Loomis is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of 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 Growth Fund 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 Growth Fund Of 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 Growth Fund i.e., Growth Fund and Loomis Sayles go up and down completely randomly.
Pair Corralation between Growth Fund and Loomis Sayles
Assuming the 90 days horizon Growth Fund Of is expected to generate 0.83 times more return on investment than Loomis Sayles. However, Growth Fund Of is 1.21 times less risky than Loomis Sayles. It trades about 0.13 of its potential returns per unit of risk. Loomis Sayles Growth is currently generating about 0.1 per unit of risk. If you would invest 6,199 in Growth Fund Of on September 12, 2024 and sell it today you would earn a total of 2,066 from holding Growth Fund Of or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Loomis Sayles Growth
Performance |
| Timeline |
| Growth Fund |
| Loomis Sayles Growth |
Growth Fund and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Loomis Sayles
The main advantage of trading using opposite Growth Fund and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund 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.| Growth Fund vs. Europacific Growth Fund | Growth Fund vs. Capital World Growth | Growth Fund vs. American Funds Fundamental | Growth Fund vs. Washington Mutual Investors |
| Loomis Sayles vs. American Funds The | Loomis Sayles vs. American Funds The | Loomis Sayles vs. Growth Fund Of | Loomis Sayles vs. Growth Fund Of |
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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