Correlation Between Prudential Global and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Prudential Global 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 Prudential Global and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Global Total and Loomis Sayles Global, you can compare the effects of market volatilities on Prudential Global 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 Prudential Global with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Global and Loomis Sayles.
Diversification Opportunities for Prudential Global and Loomis Sayles
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Prudential and Loomis is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Global Total and Loomis Sayles Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Global and Prudential Global 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 Prudential Global Total 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 Global has no effect on the direction of Prudential Global i.e., Prudential Global and Loomis Sayles go up and down completely randomly.
Pair Corralation between Prudential Global and Loomis Sayles
Assuming the 90 days horizon Prudential Global Total is expected to generate 0.92 times more return on investment than Loomis Sayles. However, Prudential Global Total is 1.08 times less risky than Loomis Sayles. It trades about -0.02 of its potential returns per unit of risk. Loomis Sayles Global is currently generating about -0.02 per unit of risk. If you would invest 519.00 in Prudential Global Total on August 31, 2024 and sell it today you would lose (1.00) from holding Prudential Global Total or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Global Total vs. Loomis Sayles Global
Performance |
| Timeline |
| Prudential Global Total |
| Loomis Sayles Global |
Prudential Global and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Global and Loomis Sayles
The main advantage of trading using opposite Prudential Global and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Global 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.| Prudential Global vs. Rbc Emerging Markets | Prudential Global vs. Western Asset Diversified | Prudential Global vs. Origin Emerging Markets | Prudential Global vs. Siit Emerging Markets |
| Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. T Rowe Price | Loomis Sayles vs. Westcore Plus Bond | Loomis Sayles vs. Aberdeen Global High |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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