Correlation Between Loomis Sayles and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Baillie Gifford 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 Baillie Gifford 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 Baillie Gifford Emerging, you can compare the effects of market volatilities on Loomis Sayles and Baillie Gifford 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 Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Baillie Gifford.
Diversification Opportunities for Loomis Sayles and Baillie Gifford
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Loomis and Baillie is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Baillie Gifford Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford 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 Inflation are associated (or correlated) with Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford Emerging has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Baillie Gifford go up and down completely randomly.
Pair Corralation between Loomis Sayles and Baillie Gifford
Assuming the 90 days horizon Loomis Sayles is expected to generate 2.49 times less return on investment than Baillie Gifford. But when comparing it to its historical volatility, Loomis Sayles Inflation is 2.85 times less risky than Baillie Gifford. It trades about 0.04 of its potential returns per unit of risk. Baillie Gifford Emerging is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,821 in Baillie Gifford Emerging on September 1, 2024 and sell it today you would earn a total of 226.00 from holding Baillie Gifford Emerging or generate 12.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Loomis Sayles Inflation vs. Baillie Gifford Emerging
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Baillie Gifford Emerging |
Loomis Sayles and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Baillie Gifford
The main advantage of trading using opposite Loomis Sayles and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.| Loomis Sayles vs. Qs Moderate Growth | Loomis Sayles vs. Franklin Lifesmart Retirement | Loomis Sayles vs. Transamerica Cleartrack Retirement | Loomis Sayles vs. Dimensional Retirement Income |
| Baillie Gifford vs. Quantitative Longshort Equity | Baillie Gifford vs. Chartwell Short Duration | Baillie Gifford vs. Jhancock Short Duration | Baillie Gifford vs. Rbc Short Duration |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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