Correlation Between Henderson International and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Henderson International 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 Henderson International and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henderson International Opportunities and Loomis Sayles Strategic, you can compare the effects of market volatilities on Henderson International 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 Henderson International with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henderson International and Loomis Sayles.
Diversification Opportunities for Henderson International and Loomis Sayles
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HENDERSON and Loomis is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Henderson International Opport and Loomis Sayles Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Strategic and Henderson International 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 Henderson International Opportunities 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 Strategic has no effect on the direction of Henderson International i.e., Henderson International and Loomis Sayles go up and down completely randomly.
Pair Corralation between Henderson International and Loomis Sayles
If you would invest 1,240 in Loomis Sayles Strategic on August 30, 2024 and sell it today you would earn a total of 7.00 from holding Loomis Sayles Strategic or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Henderson International Opport vs. Loomis Sayles Strategic
Performance |
| Timeline |
| Henderson International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Loomis Sayles Strategic |
Henderson International and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henderson International and Loomis Sayles
The main advantage of trading using opposite Henderson International and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henderson International 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.| Henderson International vs. Henderson European Focus | Henderson International vs. The Hartford Capital | Henderson International vs. Ivy Asset Strategy | Henderson International vs. Loomis Sayles Strategic |
| Loomis Sayles vs. Bbh Intermediate Municipal | Loomis Sayles vs. Dws Government Money | Loomis Sayles vs. Versatile Bond Portfolio | Loomis Sayles vs. Financial Industries Fund |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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