Correlation Between Loomis Sayles and Gateway Equity
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Gateway Equity 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 Gateway Equity 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 Gateway Equity Call, you can compare the effects of market volatilities on Loomis Sayles and Gateway Equity 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 Gateway Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Gateway Equity.
Diversification Opportunities for Loomis Sayles and Gateway Equity
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Loomis and Gateway is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Limited and Gateway Equity Call in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Equity Call 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 Gateway Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Equity Call has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Gateway Equity go up and down completely randomly.
Pair Corralation between Loomis Sayles and Gateway Equity
Assuming the 90 days horizon Loomis Sayles is expected to generate 6.17 times less return on investment than Gateway Equity. But when comparing it to its historical volatility, Loomis Sayles Limited is 4.29 times less risky than Gateway Equity. It trades about 0.14 of its potential returns per unit of risk. Gateway Equity Call is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,965 in Gateway Equity Call on August 30, 2024 and sell it today you would earn a total of 45.00 from holding Gateway Equity Call or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Limited vs. Gateway Equity Call
Performance |
| Timeline |
| Loomis Sayles Limited |
| Gateway Equity Call |
Loomis Sayles and Gateway Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Gateway Equity
The main advantage of trading using opposite Loomis Sayles and Gateway Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Gateway Equity 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 Gateway Equity will offset losses from the drop in Gateway Equity's long position.| Loomis Sayles vs. Nasdaq 100 Index Fund | Loomis Sayles vs. Volumetric Fund Volumetric | Loomis Sayles vs. Nova Fund Class | Loomis Sayles vs. Omni Small Cap Value |
| Gateway Equity vs. Champlain Small | Gateway Equity vs. Touchstone Small Cap | Gateway Equity vs. Tax Managed Mid Small | Gateway Equity vs. Kinetics Small Cap |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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