Correlation Between Loomis Sayles and Brown Advisory
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Brown Advisory 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 Brown Advisory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Inflation and Brown Advisory Small Cap, you can compare the effects of market volatilities on Loomis Sayles and Brown Advisory 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 Brown Advisory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Brown Advisory.
Diversification Opportunities for Loomis Sayles and Brown Advisory
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Loomis and Brown is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Brown Advisory Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brown Advisory Small 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 Inflation are associated (or correlated) with Brown Advisory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brown Advisory Small has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Brown Advisory go up and down completely randomly.
Pair Corralation between Loomis Sayles and Brown Advisory
Assuming the 90 days horizon Loomis Sayles Inflation is expected to generate 0.08 times more return on investment than Brown Advisory. However, Loomis Sayles Inflation is 12.46 times less risky than Brown Advisory. It trades about 0.04 of its potential returns per unit of risk. Brown Advisory Small Cap is currently generating about -0.21 per unit of risk. If you would invest 959.00 in Loomis Sayles Inflation on September 19, 2024 and sell it today you would earn a total of 2.00 from holding Loomis Sayles Inflation or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Inflation vs. Brown Advisory Small Cap
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Brown Advisory Small |
Loomis Sayles and Brown Advisory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Brown Advisory
The main advantage of trading using opposite Loomis Sayles and Brown Advisory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Brown Advisory 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 Brown Advisory will offset losses from the drop in Brown Advisory's long position.| Loomis Sayles vs. Pnc Emerging Markets | Loomis Sayles vs. Vy Jpmorgan Emerging | Loomis Sayles vs. Franklin Emerging Market | Loomis Sayles vs. Transamerica Emerging Markets |
| Brown Advisory vs. Loomis Sayles Inflation | Brown Advisory vs. Goldman Sachs Inflation | Brown Advisory vs. Blackrock Inflation Protected | Brown Advisory vs. Aqr Managed Futures |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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