Correlation Between Loomis Sayles and Mfs Technology
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Mfs Technology 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 Mfs Technology 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 Mfs Technology Fund, you can compare the effects of market volatilities on Loomis Sayles and Mfs Technology 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 Mfs Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Mfs Technology.
Diversification Opportunities for Loomis Sayles and Mfs Technology
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Loomis and Mfs is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Limited and Mfs Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Technology 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 Mfs Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Technology has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Mfs Technology go up and down completely randomly.
Pair Corralation between Loomis Sayles and Mfs Technology
Assuming the 90 days horizon Loomis Sayles is expected to generate 8.11 times less return on investment than Mfs Technology. But when comparing it to its historical volatility, Loomis Sayles Limited is 10.72 times less risky than Mfs Technology. It trades about 0.18 of its potential returns per unit of risk. Mfs Technology Fund is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,241 in Mfs Technology Fund on September 14, 2024 and sell it today you would earn a total of 154.00 from holding Mfs Technology Fund or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Limited vs. Mfs Technology Fund
Performance |
| Timeline |
| Loomis Sayles Limited |
| Mfs Technology |
Loomis Sayles and Mfs Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Mfs Technology
The main advantage of trading using opposite Loomis Sayles and Mfs Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Mfs Technology 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 Mfs Technology will offset losses from the drop in Mfs Technology's long position.| Loomis Sayles vs. T Rowe Price | Loomis Sayles vs. L Abbett Fundamental | Loomis Sayles vs. Eic Value Fund | Loomis Sayles vs. Auer Growth Fund |
| Mfs Technology vs. Veea Inc | Mfs Technology vs. VivoPower International PLC | Mfs Technology vs. Mfs Prudent Investor | Mfs Technology vs. Mfs Prudent Investor |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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