Correlation Between Gmo Core and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Gmo Core 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 Core 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 E Plus and Loomis Sayles Institutional, you can compare the effects of market volatilities on Gmo Core 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 Core with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Core and Loomis Sayles.
Diversification Opportunities for Gmo Core and Loomis Sayles
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gmo and Loomis is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gmo E Plus and Loomis Sayles Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Instit and Gmo Core 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 E Plus 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 Instit has no effect on the direction of Gmo Core i.e., Gmo Core and Loomis Sayles go up and down completely randomly.
Pair Corralation between Gmo Core and Loomis Sayles
Assuming the 90 days horizon Gmo Core is expected to generate 2.11 times less return on investment than Loomis Sayles. In addition to that, Gmo Core is 1.64 times more volatile than Loomis Sayles Institutional. It trades about 0.09 of its total potential returns per unit of risk. Loomis Sayles Institutional is currently generating about 0.31 per unit of volatility. If you would invest 556.00 in Loomis Sayles Institutional on September 1, 2024 and sell it today you would earn a total of 46.00 from holding Loomis Sayles Institutional or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Gmo E Plus vs. Loomis Sayles Institutional
Performance |
| Timeline |
| Gmo E Plus |
| Loomis Sayles Instit |
Gmo Core and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Core and Loomis Sayles
The main advantage of trading using opposite Gmo Core and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Core 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 Core vs. Firsthand Alternative Energy | Gmo Core vs. Goehring Rozencwajg Resources | Gmo Core vs. Energy Services Fund | Gmo Core vs. Jennison Natural Resources |
| Loomis Sayles vs. International Investors Gold | Loomis Sayles vs. Vy Goldman Sachs | Loomis Sayles vs. Global Gold Fund | Loomis Sayles vs. Oppenheimer Gold Special |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |