Correlation Between Loomis Sayles and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Neuberger Berman 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 Neuberger Berman 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 Neuberger Berman Intl, you can compare the effects of market volatilities on Loomis Sayles and Neuberger Berman 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 Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Neuberger Berman.
Diversification Opportunities for Loomis Sayles and Neuberger Berman
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loomis and Neuberger is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Neuberger Berman Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Intl 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Intl has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Neuberger Berman go up and down completely randomly.
Pair Corralation between Loomis Sayles and Neuberger Berman
Assuming the 90 days horizon Loomis Sayles Inflation is expected to generate 0.37 times more return on investment than Neuberger Berman. However, Loomis Sayles Inflation is 2.74 times less risky than Neuberger Berman. It trades about -0.05 of its potential returns per unit of risk. Neuberger Berman Intl is currently generating about -0.12 per unit of risk. If you would invest 973.00 in Loomis Sayles Inflation on September 13, 2024 and sell it today you would lose (5.00) from holding Loomis Sayles Inflation or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Inflation vs. Neuberger Berman Intl
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Neuberger Berman Intl |
Loomis Sayles and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Neuberger Berman
The main advantage of trading using opposite Loomis Sayles and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman's 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 |
| Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large | Neuberger Berman vs. Neuberger Berman Large |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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