Correlation Between Kinetics Small and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Kinetics Small 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 Small 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 Small Cap and Loomis Sayles Inflation, you can compare the effects of market volatilities on Kinetics Small 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 Small with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Small and Loomis Sayles.
Diversification Opportunities for Kinetics Small and Loomis Sayles
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetics and Loomis is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Small Cap 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 Small 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 Small Cap 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 Small i.e., Kinetics Small and Loomis Sayles go up and down completely randomly.
Pair Corralation between Kinetics Small and Loomis Sayles
Assuming the 90 days horizon Kinetics Small Cap is expected to generate 6.79 times more return on investment than Loomis Sayles. However, Kinetics Small is 6.79 times more volatile than Loomis Sayles Inflation. It trades about 0.4 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 15,081 in Kinetics Small Cap on August 26, 2024 and sell it today you would earn a total of 8,906 from holding Kinetics Small Cap or generate 59.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Small Cap vs. Loomis Sayles Inflation
Performance |
| Timeline |
| Kinetics Small Cap |
| Loomis Sayles Inflation |
Kinetics Small and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Small and Loomis Sayles
The main advantage of trading using opposite Kinetics Small and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Small 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 Small vs. Aqr Large Cap | Kinetics Small vs. Qs Large Cap | Kinetics Small vs. Massmutual Select T | Kinetics Small vs. T Rowe Price |
| Loomis Sayles vs. Baird Smallmid Cap | Loomis Sayles vs. Kinetics Small Cap | Loomis Sayles vs. Champlain Small | Loomis Sayles vs. Qs Small Capitalization |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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