Correlation Between Loomis Sayles and Kinetics Market
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Kinetics Market 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 Kinetics Market 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 Kinetics Market Opportunities, you can compare the effects of market volatilities on Loomis Sayles and Kinetics Market 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 Kinetics Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Kinetics Market.
Diversification Opportunities for Loomis Sayles and Kinetics Market
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Loomis and Kinetics is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Kinetics Market Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Market Oppo 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 Kinetics Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Market Oppo has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Kinetics Market go up and down completely randomly.
Pair Corralation between Loomis Sayles and Kinetics Market
Assuming the 90 days horizon Loomis Sayles is expected to generate 253.78 times less return on investment than Kinetics Market. But when comparing it to its historical volatility, Loomis Sayles Inflation is 10.34 times less risky than Kinetics Market. It trades about 0.02 of its potential returns per unit of risk. Kinetics Market Opportunities is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 6,906 in Kinetics Market Opportunities on August 31, 2024 and sell it today you would earn a total of 2,182 from holding Kinetics Market Opportunities or generate 31.6% 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. Kinetics Market Opportunities
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Kinetics Market Oppo |
Loomis Sayles and Kinetics Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Kinetics Market
The main advantage of trading using opposite Loomis Sayles and Kinetics Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Kinetics Market 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 Kinetics Market will offset losses from the drop in Kinetics Market's long position.| Loomis Sayles vs. Amg River Road | Loomis Sayles vs. Hennessy Nerstone Mid | Loomis Sayles vs. Fidelity Small Cap | Loomis Sayles vs. Applied Finance Explorer |
| Kinetics Market vs. Franklin Government Money | Kinetics Market vs. Aim Investment Secs | Kinetics Market vs. Dreyfus Institutional Reserves | Kinetics Market vs. Transamerica Funds |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Directory Find actively traded commodities issued by global exchanges |