Correlation Between Loomis Sayles and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Fidelity Advisor 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 Fidelity Advisor 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 Fidelity Advisor Emerging, you can compare the effects of market volatilities on Loomis Sayles and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Fidelity Advisor.
Diversification Opportunities for Loomis Sayles and Fidelity Advisor
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Loomis and Fidelity is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Growth and Fidelity Advisor Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Emerging 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 Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Emerging has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Loomis Sayles and Fidelity Advisor
Assuming the 90 days horizon Loomis Sayles Growth is expected to generate 1.04 times more return on investment than Fidelity Advisor. However, Loomis Sayles is 1.04 times more volatile than Fidelity Advisor Emerging. It trades about 0.19 of its potential returns per unit of risk. Fidelity Advisor Emerging is currently generating about -0.16 per unit of risk. If you would invest 2,629 in Loomis Sayles Growth on August 31, 2024 and sell it today you would earn a total of 126.00 from holding Loomis Sayles Growth or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Growth vs. Fidelity Advisor Emerging
Performance |
| Timeline |
| Loomis Sayles Growth |
| Fidelity Advisor Emerging |
Loomis Sayles and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Fidelity Advisor
The main advantage of trading using opposite Loomis Sayles and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor's long position.| Loomis Sayles vs. Diamond Hill Large | Loomis Sayles vs. Loomis Sayles Growth | Loomis Sayles vs. Loomis Sayles Growth | Loomis Sayles vs. Natixis Equity Opportunities |
| Fidelity Advisor vs. Fidelity International Growth | Fidelity Advisor vs. Fidelity Sai Treasury | Fidelity Advisor vs. Fidelity International Discovery | Fidelity Advisor vs. Fidelity Servative Income |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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