Correlation Between Loomis Sayles and William Blair
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and William Blair 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 William Blair 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 William Blair International, you can compare the effects of market volatilities on Loomis Sayles and William Blair 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 William Blair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and William Blair.
Diversification Opportunities for Loomis Sayles and William Blair
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loomis and William is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and William Blair International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on William Blair Intern 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 William Blair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of William Blair Intern has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and William Blair go up and down completely randomly.
Pair Corralation between Loomis Sayles and William Blair
Assuming the 90 days horizon Loomis Sayles Inflation is expected to generate 0.47 times more return on investment than William Blair. However, Loomis Sayles Inflation is 2.11 times less risky than William Blair. It trades about 0.09 of its potential returns per unit of risk. William Blair International is currently generating about -0.05 per unit of risk. If you would invest 963.00 in Loomis Sayles Inflation on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Loomis Sayles Inflation or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Inflation vs. William Blair International
Performance |
| Timeline |
| Loomis Sayles Inflation |
| William Blair Intern |
Loomis Sayles and William Blair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and William Blair
The main advantage of trading using opposite Loomis Sayles and William Blair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, William Blair 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 William Blair will offset losses from the drop in William Blair'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 |
| William Blair vs. William Blair China | William Blair vs. William Blair Small Mid | William Blair vs. William Blair Small Mid | William Blair vs. William Blair Small Mid |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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