Correlation Between Columbia Corporate and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Columbia Corporate and Loomis Sayles 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 Columbia Corporate and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Porate Income and Loomis Sayles Fixed, you can compare the effects of market volatilities on Columbia Corporate and Loomis Sayles 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 Columbia Corporate with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Corporate and Loomis Sayles.
Diversification Opportunities for Columbia Corporate and Loomis Sayles
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Columbia and Loomis is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Porate Income and Loomis Sayles Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Fixed and Columbia Corporate 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 Columbia Porate Income are associated (or correlated) with Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Fixed has no effect on the direction of Columbia Corporate i.e., Columbia Corporate and Loomis Sayles go up and down completely randomly.
Pair Corralation between Columbia Corporate and Loomis Sayles
Assuming the 90 days horizon Columbia Corporate is expected to generate 1.31 times less return on investment than Loomis Sayles. In addition to that, Columbia Corporate is 1.08 times more volatile than Loomis Sayles Fixed. It trades about 0.08 of its total potential returns per unit of risk. Loomis Sayles Fixed is currently generating about 0.11 per unit of volatility. If you would invest 1,152 in Loomis Sayles Fixed on September 1, 2024 and sell it today you would earn a total of 73.00 from holding Loomis Sayles Fixed or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Porate Income vs. Loomis Sayles Fixed
Performance |
| Timeline |
| Columbia Porate Income |
| Loomis Sayles Fixed |
Columbia Corporate and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Corporate and Loomis Sayles
The main advantage of trading using opposite Columbia Corporate and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Corporate position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| Columbia Corporate vs. Columbia Ultra Short | Columbia Corporate vs. Columbia Integrated Large | Columbia Corporate vs. Columbia Integrated Large | Columbia Corporate vs. Columbia Integrated Large |
| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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