Correlation Between Gmo Resources and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Gmo Resources 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 Gmo Resources and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo Resources and Loomis Sayles Inflation, you can compare the effects of market volatilities on Gmo Resources 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 Gmo Resources with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Resources and Loomis Sayles.
Diversification Opportunities for Gmo Resources and Loomis Sayles
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gmo and Loomis is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Resources and Loomis Sayles Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Inflation and Gmo Resources 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 Gmo Resources 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 Inflation has no effect on the direction of Gmo Resources i.e., Gmo Resources and Loomis Sayles go up and down completely randomly.
Pair Corralation between Gmo Resources and Loomis Sayles
Assuming the 90 days horizon Gmo Resources is expected to under-perform the Loomis Sayles. In addition to that, Gmo Resources is 5.54 times more volatile than Loomis Sayles Inflation. It trades about -0.07 of its total potential returns per unit of risk. Loomis Sayles Inflation is currently generating about 0.25 per unit of volatility. If you would invest 957.00 in Loomis Sayles Inflation on November 27, 2024 and sell it today you would earn a total of 11.00 from holding Loomis Sayles Inflation or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo Resources vs. Loomis Sayles Inflation
Performance |
| Timeline |
| Gmo Resources |
| Loomis Sayles Inflation |
Gmo Resources and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Resources and Loomis Sayles
The main advantage of trading using opposite Gmo Resources and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Resources 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.| Gmo Resources vs. Ab Bond Inflation | Gmo Resources vs. Versatile Bond Portfolio | Gmo Resources vs. Artisan High Income | Gmo Resources vs. Intermediate Bond Fund |
| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |