Correlation Between Henderson Global and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Henderson 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 Henderson 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 Henderson Global Equity and Loomis Sayles Strategic, you can compare the effects of market volatilities on Henderson 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 Henderson Global with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henderson Global and Loomis Sayles.
Diversification Opportunities for Henderson Global and Loomis Sayles
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Henderson and Loomis is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Henderson Global Equity 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 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 Henderson Global Equity 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 Global i.e., Henderson Global and Loomis Sayles go up and down completely randomly.
Pair Corralation between Henderson Global and Loomis Sayles
Assuming the 90 days horizon Henderson Global Equity is expected to generate 1.97 times more return on investment than Loomis Sayles. However, Henderson Global is 1.97 times more volatile than Loomis Sayles Strategic. It trades about 0.46 of its potential returns per unit of risk. Loomis Sayles Strategic is currently generating about 0.18 per unit of risk. If you would invest 629.00 in Henderson Global Equity on November 28, 2024 and sell it today you would earn a total of 26.00 from holding Henderson Global Equity or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henderson Global Equity vs. Loomis Sayles Strategic
Performance |
| Timeline |
| Henderson Global Equity |
| Loomis Sayles Strategic |
Henderson Global and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henderson Global and Loomis Sayles
The main advantage of trading using opposite Henderson Global and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henderson 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.| Henderson Global vs. Thornburg Investment Income | Henderson Global vs. Federated Strategic Value | Henderson Global vs. Franklin Income Fund | Henderson Global vs. Blackrock Incm Ptf |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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