Correlation Between Kinetics Paradigm and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm 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 Paradigm 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 Paradigm Fund and Loomis Sayles Small, you can compare the effects of market volatilities on Kinetics Paradigm 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 Paradigm with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Loomis Sayles.
Diversification Opportunities for Kinetics Paradigm and Loomis Sayles
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinetics and Loomis is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund 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 Kinetics Paradigm 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 Paradigm 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 Small has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Loomis Sayles go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Loomis Sayles
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 1.57 times more return on investment than Loomis Sayles. However, Kinetics Paradigm is 1.57 times more volatile than Loomis Sayles Small. It trades about 0.08 of its potential returns per unit of risk. Loomis Sayles Small is currently generating about 0.04 per unit of risk. If you would invest 9,677 in Kinetics Paradigm Fund on August 26, 2024 and sell it today you would earn a total of 8,752 from holding Kinetics Paradigm Fund or generate 90.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Loomis Sayles Small
Performance |
| Timeline |
| Kinetics Paradigm |
| Loomis Sayles Small |
Kinetics Paradigm and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Loomis Sayles
The main advantage of trading using opposite Kinetics Paradigm and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm 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 Paradigm vs. Knights Of Umbus | Kinetics Paradigm vs. Legg Mason Bw | Kinetics Paradigm vs. Transamerica Large Cap | Kinetics Paradigm vs. Goldman Sachs Large |
| Loomis Sayles vs. Pro Blend Moderate Term | Loomis Sayles vs. Wisdomtree Siegel Moderate | Loomis Sayles vs. Target Retirement 2040 | Loomis Sayles vs. Tiaa Cref Lifecycle Retirement |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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