Correlation Between Guidepath(r) Managed and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Guidepath(r) Managed 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 Guidepath(r) Managed and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidepath Managed Futures and Loomis Sayles Inflation, you can compare the effects of market volatilities on Guidepath(r) Managed 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 Guidepath(r) Managed with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidepath(r) Managed and Loomis Sayles.
Diversification Opportunities for Guidepath(r) Managed and Loomis Sayles
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guidepath(r) and Loomis is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Managed Futures 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 Guidepath(r) Managed 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 Guidepath Managed Futures 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 Guidepath(r) Managed i.e., Guidepath(r) Managed and Loomis Sayles go up and down completely randomly.
Pair Corralation between Guidepath(r) Managed and Loomis Sayles
Assuming the 90 days horizon Guidepath Managed Futures is expected to under-perform the Loomis Sayles. In addition to that, Guidepath(r) Managed is 1.96 times more volatile than Loomis Sayles Inflation. It trades about -0.05 of its total potential returns per unit of risk. Loomis Sayles Inflation is currently generating about -0.08 per unit of volatility. If you would invest 972.00 in Loomis Sayles Inflation on August 28, 2024 and sell it today you would lose (14.00) from holding Loomis Sayles Inflation or give up 1.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidepath Managed Futures vs. Loomis Sayles Inflation
Performance |
| Timeline |
| Guidepath Managed Futures |
| Loomis Sayles Inflation |
Guidepath(r) Managed and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidepath(r) Managed and Loomis Sayles
The main advantage of trading using opposite Guidepath(r) Managed and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidepath(r) Managed 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.| Guidepath(r) Managed vs. Guidepath Absolute Return | Guidepath(r) Managed vs. Guidepath Conservative Income | Guidepath(r) Managed vs. Guidepath Flexible Income | Guidepath(r) Managed vs. Guidepath Growth And |
| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Small |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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