Correlation Between Loomis Sayles and Vy Jpmorgan
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Vy Jpmorgan 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 Vy Jpmorgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles International and Vy Jpmorgan Emerging, you can compare the effects of market volatilities on Loomis Sayles and Vy Jpmorgan 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 Vy Jpmorgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Vy Jpmorgan.
Diversification Opportunities for Loomis Sayles and Vy Jpmorgan
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loomis and IJPTX is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles International and Vy Jpmorgan Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Jpmorgan 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 International are associated (or correlated) with Vy Jpmorgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Jpmorgan Emerging has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Vy Jpmorgan go up and down completely randomly.
Pair Corralation between Loomis Sayles and Vy Jpmorgan
Assuming the 90 days horizon Loomis Sayles International is expected to generate 1.16 times more return on investment than Vy Jpmorgan. However, Loomis Sayles is 1.16 times more volatile than Vy Jpmorgan Emerging. It trades about 0.15 of its potential returns per unit of risk. Vy Jpmorgan Emerging is currently generating about 0.09 per unit of risk. If you would invest 1,099 in Loomis Sayles International on September 13, 2024 and sell it today you would earn a total of 26.00 from holding Loomis Sayles International or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles International vs. Vy Jpmorgan Emerging
Performance |
| Timeline |
| Loomis Sayles Intern |
| Vy Jpmorgan Emerging |
Loomis Sayles and Vy Jpmorgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Vy Jpmorgan
The main advantage of trading using opposite Loomis Sayles and Vy Jpmorgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Vy Jpmorgan 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 Vy Jpmorgan will offset losses from the drop in Vy Jpmorgan'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 |
| Vy Jpmorgan vs. Franklin Government Money | Vy Jpmorgan vs. Hewitt Money Market | Vy Jpmorgan vs. Aig Government Money | Vy Jpmorgan vs. The Gabelli Money |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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