Correlation Between Loomis Sayles and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Sterling Capital 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 Sterling Capital 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 Sterling Capital Intermediate, you can compare the effects of market volatilities on Loomis Sayles and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Sterling Capital.
Diversification Opportunities for Loomis Sayles and Sterling Capital
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loomis and Sterling is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Sterling Capital Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Int 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Int has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Sterling Capital go up and down completely randomly.
Pair Corralation between Loomis Sayles and Sterling Capital
Assuming the 90 days horizon Loomis Sayles Inflation is expected to generate 1.16 times more return on investment than Sterling Capital. However, Loomis Sayles is 1.16 times more volatile than Sterling Capital Intermediate. It trades about 0.03 of its potential returns per unit of risk. Sterling Capital Intermediate is currently generating about 0.03 per unit of risk. If you would invest 917.00 in Loomis Sayles Inflation on August 30, 2024 and sell it today you would earn a total of 48.00 from holding Loomis Sayles Inflation or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Inflation vs. Sterling Capital Intermediate
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Sterling Capital Int |
Loomis Sayles and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Sterling Capital
The main advantage of trading using opposite Loomis Sayles and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| Loomis Sayles vs. Gmo Resources | Loomis Sayles vs. Energy Services Fund | Loomis Sayles vs. Firsthand Alternative Energy | Loomis Sayles vs. Icon Natural Resources |
| Sterling Capital vs. The Hartford Equity | Sterling Capital vs. Rbc Global Equity | Sterling Capital vs. Us Vector Equity | Sterling Capital vs. Dodge International Stock |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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