Correlation Between Loomis Sayles and Natixis Sustainable
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Natixis Sustainable 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 Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Investment and Natixis Sustainable Future, you can compare the effects of market volatilities on Loomis Sayles and Natixis Sustainable 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 Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Natixis Sustainable.
Diversification Opportunities for Loomis Sayles and Natixis Sustainable
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Loomis and Natixis is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Investment and Natixis Sustainable Future in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Sustainable 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 Investment are associated (or correlated) with Natixis Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Sustainable has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Natixis Sustainable go up and down completely randomly.
Pair Corralation between Loomis Sayles and Natixis Sustainable
Assuming the 90 days horizon Loomis Sayles Investment is expected to under-perform the Natixis Sustainable. But the mutual fund apears to be less risky and, when comparing its historical volatility, Loomis Sayles Investment is 1.75 times less risky than Natixis Sustainable. The mutual fund trades about -0.07 of its potential returns per unit of risk. The Natixis Sustainable Future is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,240 in Natixis Sustainable Future on August 28, 2024 and sell it today you would earn a total of 44.00 from holding Natixis Sustainable Future or generate 3.55% 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 Investment vs. Natixis Sustainable Future
Performance |
| Timeline |
| Loomis Sayles Investment |
| Natixis Sustainable |
Loomis Sayles and Natixis Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Natixis Sustainable
The main advantage of trading using opposite Loomis Sayles and Natixis Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Natixis Sustainable 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 Sustainable will offset losses from the drop in Natixis Sustainable'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 |
| Natixis Sustainable vs. Pace Large Growth | Natixis Sustainable vs. Tax Managed Large Cap | Natixis Sustainable vs. Federated Mdt Large | Natixis Sustainable vs. Rational Strategic Allocation |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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