Correlation Between Loomis Sayles and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Fidelity Advisor 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 Fidelity Advisor 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 Fidelity Advisor Growth, you can compare the effects of market volatilities on Loomis Sayles and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Fidelity Advisor.
Diversification Opportunities for Loomis Sayles and Fidelity Advisor
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Loomis and FIDELITY is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Fidelity Advisor Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Growth 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 Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Growth has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Loomis Sayles and Fidelity Advisor
Assuming the 90 days horizon Loomis Sayles Inflation is expected to under-perform the Fidelity Advisor. But the mutual fund apears to be less risky and, when comparing its historical volatility, Loomis Sayles Inflation is 5.43 times less risky than Fidelity Advisor. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Fidelity Advisor Growth is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 19,190 in Fidelity Advisor Growth on August 28, 2024 and sell it today you would earn a total of 500.00 from holding Fidelity Advisor Growth or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Inflation vs. Fidelity Advisor Growth
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Fidelity Advisor Growth |
Loomis Sayles and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Fidelity Advisor
The main advantage of trading using opposite Loomis Sayles and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor's long position.| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Small |
| Fidelity Advisor vs. Enhanced Large Pany | Fidelity Advisor vs. Pace Large Growth | Fidelity Advisor vs. Qs Large Cap | Fidelity Advisor vs. Gmo Equity Allocation |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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