Correlation Between Guidemark(r) Small/mid and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Guidemark(r) Small/mid 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 Guidemark(r) Small/mid and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidemark Smallmid Cap and Loomis Sayles Inflation, you can compare the effects of market volatilities on Guidemark(r) Small/mid 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 Guidemark(r) Small/mid with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark(r) Small/mid and Loomis Sayles.
Diversification Opportunities for Guidemark(r) Small/mid and Loomis Sayles
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guidemark(r) and Loomis is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Smallmid Cap 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 Guidemark(r) Small/mid 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 Guidemark Smallmid Cap 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 Guidemark(r) Small/mid i.e., Guidemark(r) Small/mid and Loomis Sayles go up and down completely randomly.
Pair Corralation between Guidemark(r) Small/mid and Loomis Sayles
Assuming the 90 days horizon Guidemark Smallmid Cap is expected to generate 5.22 times more return on investment than Loomis Sayles. However, Guidemark(r) Small/mid is 5.22 times more volatile than Loomis Sayles Inflation. It trades about 0.27 of its potential returns per unit of risk. Loomis Sayles Inflation is currently generating about 0.02 per unit of risk. If you would invest 2,104 in Guidemark Smallmid Cap on August 31, 2024 and sell it today you would earn a total of 187.00 from holding Guidemark Smallmid Cap or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidemark Smallmid Cap vs. Loomis Sayles Inflation
Performance |
| Timeline |
| Guidemark Smallmid Cap |
| Loomis Sayles Inflation |
Guidemark(r) Small/mid and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidemark(r) Small/mid and Loomis Sayles
The main advantage of trading using opposite Guidemark(r) Small/mid and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark(r) Small/mid 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.| Guidemark(r) Small/mid vs. L Abbett Growth | Guidemark(r) Small/mid vs. Kinetics Small Cap | Guidemark(r) Small/mid vs. Eip Growth And | Guidemark(r) Small/mid vs. Artisan Small Cap |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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