Correlation Between Loomis Sayles and Aew Real
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Aew Real 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 Aew Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Growth and Aew Real Estate, you can compare the effects of market volatilities on Loomis Sayles and Aew Real 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 Aew Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Aew Real.
Diversification Opportunities for Loomis Sayles and Aew Real
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Loomis and AEW is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Growth and Aew Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aew Real Estate 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 Growth are associated (or correlated) with Aew Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aew Real Estate has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Aew Real go up and down completely randomly.
Pair Corralation between Loomis Sayles and Aew Real
Assuming the 90 days horizon Loomis Sayles Growth is expected to generate 1.16 times more return on investment than Aew Real. However, Loomis Sayles is 1.16 times more volatile than Aew Real Estate. It trades about 0.09 of its potential returns per unit of risk. Aew Real Estate is currently generating about 0.06 per unit of risk. If you would invest 2,163 in Loomis Sayles Growth on August 31, 2024 and sell it today you would earn a total of 948.00 from holding Loomis Sayles Growth or generate 43.83% 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 Growth vs. Aew Real Estate
Performance |
| Timeline |
| Loomis Sayles Growth |
| Aew Real Estate |
Loomis Sayles and Aew Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Aew Real
The main advantage of trading using opposite Loomis Sayles and Aew Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Aew Real 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 Aew Real will offset losses from the drop in Aew Real's long position.| Loomis Sayles vs. Loomis Sayles Growth | Loomis Sayles vs. Loomis Sayles Growth | Loomis Sayles vs. Diamond Hill Large | Loomis Sayles vs. Loomis Sayles Growth |
| Aew Real vs. T Rowe Price | Aew Real vs. Blackrock Sm Cap | Aew Real vs. Jhancock Diversified Macro | Aew Real vs. Lord Abbett Diversified |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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