Correlation Between Loomis Sayles and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Inflation, you can compare the effects of market volatilities on Loomis Sayles and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Goldman Sachs.
Diversification Opportunities for Loomis Sayles and Goldman Sachs
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Loomis and Goldman is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Goldman Sachs Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Inflation has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Goldman Sachs go up and down completely randomly.
Pair Corralation between Loomis Sayles and Goldman Sachs
Assuming the 90 days horizon Loomis Sayles is expected to generate 1.23 times less return on investment than Goldman Sachs. In addition to that, Loomis Sayles is 1.12 times more volatile than Goldman Sachs Inflation. It trades about 0.2 of its total potential returns per unit of risk. Goldman Sachs Inflation is currently generating about 0.27 per unit of volatility. If you would invest 949.00 in Goldman Sachs Inflation on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Goldman Sachs Inflation or generate 1.16% 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. Goldman Sachs Inflation
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Goldman Sachs Inflation |
Loomis Sayles and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Goldman Sachs
The main advantage of trading using opposite Loomis Sayles and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Loomis Sayles vs. Smallcap Growth Fund | Loomis Sayles vs. Df Dent Small | Loomis Sayles vs. Lebenthal Lisanti Small | Loomis Sayles vs. Scout Small Cap |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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