Correlation Between Loomis Sayles and Shelton Emerging
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Shelton 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 Shelton Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Limited and Shelton Emerging Markets, you can compare the effects of market volatilities on Loomis Sayles and Shelton 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 Shelton Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Shelton Emerging.
Diversification Opportunities for Loomis Sayles and Shelton Emerging
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Loomis and Shelton is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Limited and Shelton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton 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 Limited are associated (or correlated) with Shelton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Emerging Markets has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Shelton Emerging go up and down completely randomly.
Pair Corralation between Loomis Sayles and Shelton Emerging
Assuming the 90 days horizon Loomis Sayles Limited is expected to generate 0.12 times more return on investment than Shelton Emerging. However, Loomis Sayles Limited is 8.26 times less risky than Shelton Emerging. It trades about 0.11 of its potential returns per unit of risk. Shelton Emerging Markets is currently generating about -0.27 per unit of risk. If you would invest 1,079 in Loomis Sayles Limited on September 4, 2024 and sell it today you would earn a total of 3.00 from holding Loomis Sayles Limited or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Limited vs. Shelton Emerging Markets
Performance |
| Timeline |
| Loomis Sayles Limited |
| Shelton Emerging Markets |
Loomis Sayles and Shelton Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Shelton Emerging
The main advantage of trading using opposite Loomis Sayles and Shelton Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Shelton 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 Shelton Emerging will offset losses from the drop in Shelton Emerging's long position.| Loomis Sayles vs. Asg Managed Futures | Loomis Sayles vs. Asg Managed Futures | Loomis Sayles vs. Natixis Oakmark | Loomis Sayles vs. Natixis Oakmark International |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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