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 Growth 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
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loomis and Natixis is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Growth 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 Growth 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 Growth is expected to generate 1.88 times more return on investment than Natixis Sustainable. However, Loomis Sayles is 1.88 times more volatile than Natixis Sustainable Future. It trades about 0.11 of its potential returns per unit of risk. Natixis Sustainable Future is currently generating about 0.08 per unit of risk. If you would invest 1,532 in Loomis Sayles Growth on August 31, 2024 and sell it today you would earn a total of 1,223 from holding Loomis Sayles Growth or generate 79.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Growth vs. Natixis Sustainable Future
Performance |
| Timeline |
| Loomis Sayles Growth |
| 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. Diamond Hill Large | Loomis Sayles vs. Loomis Sayles Growth | Loomis Sayles vs. Loomis Sayles Growth | Loomis Sayles vs. Natixis Equity Opportunities |
| Natixis Sustainable vs. Vanguard Target Retirement | Natixis Sustainable vs. American Funds 2035 | Natixis Sustainable vs. American Funds 2035 | Natixis Sustainable vs. American Funds 2035 |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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