Correlation Between The Emerging and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both The Emerging 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 The Emerging and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Emerging Markets and Loomis Sayles Limited, you can compare the effects of market volatilities on The Emerging 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 The Emerging with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Emerging and Loomis Sayles.
Diversification Opportunities for The Emerging and Loomis Sayles
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between The and Loomis is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding The Emerging Markets and Loomis Sayles Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Limited and The Emerging 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 The Emerging Markets 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 Limited has no effect on the direction of The Emerging i.e., The Emerging and Loomis Sayles go up and down completely randomly.
Pair Corralation between The Emerging and Loomis Sayles
Assuming the 90 days horizon The Emerging Markets is expected to under-perform the Loomis Sayles. In addition to that, The Emerging is 7.14 times more volatile than Loomis Sayles Limited. It trades about -0.2 of its total potential returns per unit of risk. Loomis Sayles Limited is currently generating about 0.11 per unit of volatility. If you would invest 1,079 in Loomis Sayles Limited on September 4, 2024 and sell it today you would earn a total of 3.00 from holding Loomis Sayles Limited or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
The Emerging Markets vs. Loomis Sayles Limited
Performance |
| Timeline |
| Emerging Markets |
| Loomis Sayles Limited |
The Emerging and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Emerging and Loomis Sayles
The main advantage of trading using opposite The Emerging and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Emerging 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.| The Emerging vs. Vanguard Total Stock | The Emerging vs. Vanguard 500 Index | The Emerging vs. Vanguard Total Stock | The Emerging vs. Vanguard Total Stock |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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