Correlation Between Loomis Sayles and Barings Emerging
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Barings Emerging 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 Loomis Sayles and Barings Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Bond and Barings Emerging Markets, you can compare the effects of market volatilities on Loomis Sayles and Barings Emerging 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 Loomis Sayles with a short position of Barings Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Barings Emerging.
Diversification Opportunities for Loomis Sayles and Barings Emerging
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loomis and Barings is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Bond and Barings Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Emerging Markets and Loomis Sayles 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 Loomis Sayles Bond are associated (or correlated) with Barings Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Emerging Markets has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Barings Emerging go up and down completely randomly.
Pair Corralation between Loomis Sayles and Barings Emerging
Assuming the 90 days horizon Loomis Sayles Bond is expected to generate 0.75 times more return on investment than Barings Emerging. However, Loomis Sayles Bond is 1.33 times less risky than Barings Emerging. It trades about 0.18 of its potential returns per unit of risk. Barings Emerging Markets is currently generating about 0.07 per unit of risk. If you would invest 1,115 in Loomis Sayles Bond on September 1, 2024 and sell it today you would earn a total of 68.00 from holding Loomis Sayles Bond or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Loomis Sayles Bond vs. Barings Emerging Markets
Performance |
| Timeline |
| Loomis Sayles Bond |
| Barings Emerging Markets |
Loomis Sayles and Barings Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Barings Emerging
The main advantage of trading using opposite Loomis Sayles and Barings Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Barings Emerging 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 Barings Emerging will offset losses from the drop in Barings Emerging's long position.| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond |
| Barings Emerging vs. Artisan High Income | Barings Emerging vs. Federated Ohio Municipal | Barings Emerging vs. Versatile Bond Portfolio | Barings Emerging vs. Ambrus Core 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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