Correlation Between Loomis Sayles and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Natixis Oakmark 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 Natixis Oakmark 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 Natixis Oakmark Intl, you can compare the effects of market volatilities on Loomis Sayles and Natixis Oakmark 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 Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Natixis Oakmark.
Diversification Opportunities for Loomis Sayles and Natixis Oakmark
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loomis and Natixis is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Limited and Natixis Oakmark Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark Intl 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 Natixis Oakmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Oakmark Intl has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Loomis Sayles and Natixis Oakmark
Assuming the 90 days horizon Loomis Sayles Limited is expected to generate 0.11 times more return on investment than Natixis Oakmark. However, Loomis Sayles Limited is 9.37 times less risky than Natixis Oakmark. It trades about 0.14 of its potential returns per unit of risk. Natixis Oakmark Intl is currently generating about -0.18 per unit of risk. If you would invest 1,077 in Loomis Sayles Limited on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Loomis Sayles Limited or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Limited vs. Natixis Oakmark Intl
Performance |
| Timeline |
| Loomis Sayles Limited |
| Natixis Oakmark Intl |
Loomis Sayles and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Natixis Oakmark
The main advantage of trading using opposite Loomis Sayles and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Natixis Oakmark 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 Natixis Oakmark will offset losses from the drop in Natixis Oakmark'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 |
| Natixis Oakmark vs. Calvert Short Duration | Natixis Oakmark vs. Aqr Long Short Equity | Natixis Oakmark vs. Ab Select Longshort | Natixis Oakmark vs. Federated Short Intermediate Duration |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Directory Find actively traded commodities issued by global exchanges |