Correlation Between Kinetics Global and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Kinetics 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 Kinetics 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 Kinetics Global Fund and Loomis Sayles Inflation, you can compare the effects of market volatilities on Kinetics 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 Kinetics Global with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Loomis Sayles.
Diversification Opportunities for Kinetics Global and Loomis Sayles
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kinetics and Loomis is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund 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 Kinetics 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 Kinetics Global Fund 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 Kinetics Global i.e., Kinetics Global and Loomis Sayles go up and down completely randomly.
Pair Corralation between Kinetics Global and Loomis Sayles
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 4.73 times more return on investment than Loomis Sayles. However, Kinetics Global is 4.73 times more volatile than Loomis Sayles Inflation. It trades about 0.15 of its potential returns per unit of risk. Loomis Sayles Inflation is currently generating about 0.08 per unit of risk. If you would invest 816.00 in Kinetics Global Fund on October 25, 2024 and sell it today you would earn a total of 786.00 from holding Kinetics Global Fund or generate 96.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Global Fund vs. Loomis Sayles Inflation
Performance |
| Timeline |
| Kinetics Global |
| Loomis Sayles Inflation |
Kinetics Global and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Loomis Sayles
The main advantage of trading using opposite Kinetics Global and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics 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.| Kinetics Global vs. Oakhurst Short Duration | Kinetics Global vs. Virtus Multi Sector Short | Kinetics Global vs. Prudential Short Duration | Kinetics Global vs. Aqr Sustainable Long Short |
| Loomis Sayles vs. Qs Global Equity | Loomis Sayles vs. Ms Global Fixed | Loomis Sayles vs. Kinetics Global Fund | Loomis Sayles vs. Rbc Global Opportunities |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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