Correlation Between Loomis Sayles and Jp Morgan
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Jp Morgan 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 Jp Morgan 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 Jp Morgan Smartretirement, you can compare the effects of market volatilities on Loomis Sayles and Jp Morgan 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 Jp Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Jp Morgan.
Diversification Opportunities for Loomis Sayles and Jp Morgan
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Loomis and JTSQX is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Jp Morgan Smartretirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jp Morgan Smartretirement 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 Jp Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jp Morgan Smartretirement has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Jp Morgan go up and down completely randomly.
Pair Corralation between Loomis Sayles and Jp Morgan
Assuming the 90 days horizon Loomis Sayles is expected to generate 5.21 times less return on investment than Jp Morgan. But when comparing it to its historical volatility, Loomis Sayles Inflation is 1.93 times less risky than Jp Morgan. It trades about 0.04 of its potential returns per unit of risk. Jp Morgan Smartretirement is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,681 in Jp Morgan Smartretirement on September 15, 2024 and sell it today you would earn a total of 706.00 from holding Jp Morgan Smartretirement or generate 42.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Inflation vs. Jp Morgan Smartretirement
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Jp Morgan Smartretirement |
Loomis Sayles and Jp Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Jp Morgan
The main advantage of trading using opposite Loomis Sayles and Jp Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Jp Morgan 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 Jp Morgan will offset losses from the drop in Jp Morgan'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 Bond |
| Jp Morgan vs. Loomis Sayles Inflation | Jp Morgan vs. American Funds Inflation | Jp Morgan vs. Ab Bond Inflation | Jp Morgan vs. Schwab Treasury Inflation |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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