Correlation Between James Balanced and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both James Balanced 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 James Balanced and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and Loomis Sayles Bond, you can compare the effects of market volatilities on James Balanced 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 James Balanced with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced and Loomis Sayles.
Diversification Opportunities for James Balanced and Loomis Sayles
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between James and Loomis is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden 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 James Balanced 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 James Balanced Golden 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 James Balanced i.e., James Balanced and Loomis Sayles go up and down completely randomly.
Pair Corralation between James Balanced and Loomis Sayles
Assuming the 90 days horizon James Balanced Golden is expected to generate 2.58 times more return on investment than Loomis Sayles. However, James Balanced is 2.58 times more volatile than Loomis Sayles Bond. It trades about 0.03 of its potential returns per unit of risk. Loomis Sayles Bond is currently generating about -0.02 per unit of risk. If you would invest 2,292 in James Balanced Golden on August 25, 2024 and sell it today you would earn a total of 7.00 from holding James Balanced Golden or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Loomis Sayles Bond
Performance |
| Timeline |
| James Balanced Golden |
| Loomis Sayles Bond |
James Balanced and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced and Loomis Sayles
The main advantage of trading using opposite James Balanced and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced 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.| James Balanced vs. Permanent Portfolio Class | James Balanced vs. Berwyn Income Fund | James Balanced vs. Large Cap Fund | James Balanced vs. Westcore Plus Bond |
| Loomis Sayles vs. Metropolitan West Total | Loomis Sayles vs. Harbor Bond Fund | Loomis Sayles vs. Doubleline Total Return | Loomis Sayles vs. Fidelity Advisor Floating |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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