Correlation Between Loomis Sayles and Moderately Aggressive
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Moderately Aggressive 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 Moderately Aggressive 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 Moderately Aggressive Balanced, you can compare the effects of market volatilities on Loomis Sayles and Moderately Aggressive 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 Moderately Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Moderately Aggressive.
Diversification Opportunities for Loomis Sayles and Moderately Aggressive
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loomis and Moderately is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles International and Moderately Aggressive Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderately Aggressive 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 Moderately Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderately Aggressive has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Moderately Aggressive go up and down completely randomly.
Pair Corralation between Loomis Sayles and Moderately Aggressive
Assuming the 90 days horizon Loomis Sayles International is expected to generate 2.27 times more return on investment than Moderately Aggressive. However, Loomis Sayles is 2.27 times more volatile than Moderately Aggressive Balanced. It trades about 0.06 of its potential returns per unit of risk. Moderately Aggressive Balanced is currently generating about -0.15 per unit of risk. If you would invest 1,110 in Loomis Sayles International on November 28, 2024 and sell it today you would earn a total of 15.00 from holding Loomis Sayles International or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Loomis Sayles International vs. Moderately Aggressive Balanced
Performance |
| Timeline |
| Loomis Sayles Intern |
| Moderately Aggressive |
Loomis Sayles and Moderately Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Moderately Aggressive
The main advantage of trading using opposite Loomis Sayles and Moderately Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Moderately Aggressive 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 Moderately Aggressive will offset losses from the drop in Moderately Aggressive's long position.| Loomis Sayles vs. Vanguard Information Technology | Loomis Sayles vs. Red Oak Technology | Loomis Sayles vs. Hennessy Technology Fund | Loomis Sayles vs. Virtus Artificial Intelligence |
| Moderately Aggressive vs. Glg Intl Small | Moderately Aggressive vs. Nt International Small Mid | Moderately Aggressive vs. Transamerica International Small | Moderately Aggressive vs. Ep Emerging Markets |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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