Correlation Between Loomis Sayles and Blackrock Inflation
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Blackrock Inflation 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 Blackrock Inflation 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 Blackrock Inflation Protected, you can compare the effects of market volatilities on Loomis Sayles and Blackrock Inflation 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 Blackrock Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Blackrock Inflation.
Diversification Opportunities for Loomis Sayles and Blackrock Inflation
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loomis and Blackrock is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Blackrock Inflation Protected in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Inflation 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 Blackrock Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Inflation has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Blackrock Inflation go up and down completely randomly.
Pair Corralation between Loomis Sayles and Blackrock Inflation
Assuming the 90 days horizon Loomis Sayles is expected to generate 1.06 times less return on investment than Blackrock Inflation. In addition to that, Loomis Sayles is 1.01 times more volatile than Blackrock Inflation Protected. It trades about 0.02 of its total potential returns per unit of risk. Blackrock Inflation Protected is currently generating about 0.03 per unit of volatility. If you would invest 930.00 in Blackrock Inflation Protected on August 24, 2024 and sell it today you would earn a total of 41.00 from holding Blackrock Inflation Protected or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Loomis Sayles Inflation vs. Blackrock Inflation Protected
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Blackrock Inflation |
Loomis Sayles and Blackrock Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Blackrock Inflation
The main advantage of trading using opposite Loomis Sayles and Blackrock Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Blackrock Inflation 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 Blackrock Inflation will offset losses from the drop in Blackrock Inflation's long position.| Loomis Sayles vs. Vanguard Inflation Protected Securities | Loomis Sayles vs. Vanguard Inflation Protected Securities | Loomis Sayles vs. American Funds Inflation | Loomis Sayles vs. American Funds Inflation |
| Blackrock Inflation vs. Sp Midcap Index | Blackrock Inflation vs. T Rowe Price | Blackrock Inflation vs. Artisan Emerging Markets | Blackrock Inflation vs. Ep Emerging Markets |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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