Correlation Between Loomis Sayles and Touchstone Ultra
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Touchstone Ultra 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 Touchstone Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Small and Touchstone Ultra Short, you can compare the effects of market volatilities on Loomis Sayles and Touchstone Ultra 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 Touchstone Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Touchstone Ultra.
Diversification Opportunities for Loomis Sayles and Touchstone Ultra
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loomis and Touchstone is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Small and Touchstone Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Ultra Short 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 Small are associated (or correlated) with Touchstone Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Ultra Short has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Touchstone Ultra go up and down completely randomly.
Pair Corralation between Loomis Sayles and Touchstone Ultra
Assuming the 90 days horizon Loomis Sayles Small is expected to generate 12.14 times more return on investment than Touchstone Ultra. However, Loomis Sayles is 12.14 times more volatile than Touchstone Ultra Short. It trades about 0.05 of its potential returns per unit of risk. Touchstone Ultra Short is currently generating about 0.27 per unit of risk. If you would invest 2,294 in Loomis Sayles Small on September 12, 2024 and sell it today you would earn a total of 444.00 from holding Loomis Sayles Small or generate 19.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Small vs. Touchstone Ultra Short
Performance |
| Timeline |
| Loomis Sayles Small |
| Touchstone Ultra Short |
Loomis Sayles and Touchstone Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Touchstone Ultra
The main advantage of trading using opposite Loomis Sayles and Touchstone Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Touchstone Ultra 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 Touchstone Ultra will offset losses from the drop in Touchstone Ultra's long position.| Loomis Sayles vs. Touchstone Ultra Short | Loomis Sayles vs. Franklin Federal Limited Term | Loomis Sayles vs. Aqr Long Short Equity | Loomis Sayles vs. Prudential Short Duration |
| Touchstone Ultra vs. SCOR PK | Touchstone Ultra vs. Morningstar Unconstrained Allocation | Touchstone Ultra vs. Via Renewables | Touchstone Ultra vs. Bondbloxx ETF Trust |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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