Correlation Between Icon Natural and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Icon Natural 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 Icon Natural and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Natural Resources and Loomis Sayles Inflation, you can compare the effects of market volatilities on Icon Natural 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 Icon Natural with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Natural and Loomis Sayles.
Diversification Opportunities for Icon Natural and Loomis Sayles
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Icon and Loomis is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Icon Natural Resources 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 Icon Natural 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 Icon Natural Resources 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 Icon Natural i.e., Icon Natural and Loomis Sayles go up and down completely randomly.
Pair Corralation between Icon Natural and Loomis Sayles
Assuming the 90 days horizon Icon Natural Resources is expected to under-perform the Loomis Sayles. In addition to that, Icon Natural is 5.41 times more volatile than Loomis Sayles Inflation. It trades about -0.13 of its total potential returns per unit of risk. Loomis Sayles Inflation is currently generating about 0.25 per unit of volatility. If you would invest 957.00 in Loomis Sayles Inflation on November 27, 2024 and sell it today you would earn a total of 11.00 from holding Loomis Sayles Inflation or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Natural Resources vs. Loomis Sayles Inflation
Performance |
| Timeline |
| Icon Natural Resources |
| Loomis Sayles Inflation |
Icon Natural and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Natural and Loomis Sayles
The main advantage of trading using opposite Icon Natural and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Natural 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.| Icon Natural vs. Icon Financial Fund | Icon Natural vs. Dreyfus Natural Resources | Icon Natural vs. Icon Natural Resources | Icon Natural vs. Icon Information Technology |
| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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