Correlation Between Thrivent High and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Thrivent High 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 Thrivent High and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent High Yield and Loomis Sayles Senior, you can compare the effects of market volatilities on Thrivent High 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 Thrivent High with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Loomis Sayles.
Diversification Opportunities for Thrivent High and Loomis Sayles
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thrivent and Loomis is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Loomis Sayles Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Senior and Thrivent High 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 Thrivent High Yield 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 Senior has no effect on the direction of Thrivent High i.e., Thrivent High and Loomis Sayles go up and down completely randomly.
Pair Corralation between Thrivent High and Loomis Sayles
Assuming the 90 days horizon Thrivent High Yield is expected to generate 1.49 times more return on investment than Loomis Sayles. However, Thrivent High is 1.49 times more volatile than Loomis Sayles Senior. It trades about 0.15 of its potential returns per unit of risk. Loomis Sayles Senior is currently generating about 0.19 per unit of risk. If you would invest 373.00 in Thrivent High Yield on September 12, 2024 and sell it today you would earn a total of 54.00 from holding Thrivent High Yield or generate 14.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Thrivent High Yield vs. Loomis Sayles Senior
Performance |
| Timeline |
| Thrivent High Yield |
| Loomis Sayles Senior |
Thrivent High and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Loomis Sayles
The main advantage of trading using opposite Thrivent High and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High 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.| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Income Fund | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap |
| Loomis Sayles vs. Lord Abbett Inv | Loomis Sayles vs. SCOR PK | Loomis Sayles vs. Morningstar Unconstrained Allocation | Loomis Sayles vs. Thrivent High Yield |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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