Correlation Between Loomis Sayles and Science Technology
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Science 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 Science Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Global and Science Technology Fund, you can compare the effects of market volatilities on Loomis Sayles and Science 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 Science Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Science Technology.
Diversification Opportunities for Loomis Sayles and Science Technology
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loomis and Science is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Global and Science Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science 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 Global are associated (or correlated) with Science Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science Technology has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Science Technology go up and down completely randomly.
Pair Corralation between Loomis Sayles and Science Technology
Assuming the 90 days horizon Loomis Sayles is expected to generate 2.34 times less return on investment than Science Technology. But when comparing it to its historical volatility, Loomis Sayles Global is 1.91 times less risky than Science Technology. It trades about 0.1 of its potential returns per unit of risk. Science Technology Fund is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,026 in Science Technology Fund on September 2, 2024 and sell it today you would earn a total of 870.00 from holding Science Technology Fund or generate 42.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Global vs. Science Technology Fund
Performance |
| Timeline |
| Loomis Sayles Global |
| Science Technology |
Loomis Sayles and Science Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Science Technology
The main advantage of trading using opposite Loomis Sayles and Science Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Science 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 Science Technology will offset losses from the drop in Science Technology's long position.| Loomis Sayles vs. First Eagle Global | Loomis Sayles vs. American Balanced Fund | Loomis Sayles vs. Loomis Sayles Strategic | Loomis Sayles vs. Thornburg Investment Income |
| Science Technology vs. Volumetric Fund Volumetric | Science Technology vs. Commonwealth Global Fund | Science Technology vs. Shelton Funds | Science Technology vs. Balanced Fund 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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