Correlation Between India Closed and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both India Closed 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 India Closed and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between India Closed and Loomis Sayles Small, you can compare the effects of market volatilities on India Closed 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 India Closed with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of India Closed and Loomis Sayles.
Diversification Opportunities for India Closed and Loomis Sayles
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between India and Loomis is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding India Closed and Loomis Sayles Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Small and India Closed 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 India Closed 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 Small has no effect on the direction of India Closed i.e., India Closed and Loomis Sayles go up and down completely randomly.
Pair Corralation between India Closed and Loomis Sayles
Considering the 90-day investment horizon India Closed is expected to generate 11.48 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, India Closed is 1.22 times less risky than Loomis Sayles. It trades about 0.03 of its potential returns per unit of risk. Loomis Sayles Small is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,083 in Loomis Sayles Small on September 1, 2024 and sell it today you would earn a total of 229.00 from holding Loomis Sayles Small or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
India Closed vs. Loomis Sayles Small
Performance |
| Timeline |
| India Closed |
| Loomis Sayles Small |
India Closed and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with India Closed and Loomis Sayles
The main advantage of trading using opposite India Closed and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if India Closed 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.| India Closed vs. China Fund | India Closed vs. Blackrock Muniyield Mi | India Closed vs. Rand Capital Corp | India Closed vs. Putnam High Income |
| Loomis Sayles vs. Ssga International Stock | Loomis Sayles vs. Northern Small Cap | Loomis Sayles vs. American Beacon Large |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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