Correlation Between Loomis Sayles and Pimco Trends
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Pimco Trends 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 Pimco Trends 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 Pimco Trends Managed, you can compare the effects of market volatilities on Loomis Sayles and Pimco Trends 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 Pimco Trends. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Pimco Trends.
Diversification Opportunities for Loomis Sayles and Pimco Trends
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loomis and Pimco is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Pimco Trends Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Trends Managed 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 Pimco Trends. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Trends Managed has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Pimco Trends go up and down completely randomly.
Pair Corralation between Loomis Sayles and Pimco Trends
Assuming the 90 days horizon Loomis Sayles Inflation is expected to generate 0.67 times more return on investment than Pimco Trends. However, Loomis Sayles Inflation is 1.48 times less risky than Pimco Trends. It trades about 0.02 of its potential returns per unit of risk. Pimco Trends Managed is currently generating about -0.04 per unit of risk. If you would invest 921.00 in Loomis Sayles Inflation on August 24, 2024 and sell it today you would earn a total of 38.00 from holding Loomis Sayles Inflation or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Inflation vs. Pimco Trends Managed
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Pimco Trends Managed |
Loomis Sayles and Pimco Trends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Pimco Trends
The main advantage of trading using opposite Loomis Sayles and Pimco Trends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Pimco Trends 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 Pimco Trends will offset losses from the drop in Pimco Trends' long position.| Loomis Sayles vs. Vanguard Inflation Protected Securities | Loomis Sayles vs. American Funds Inflation | Loomis Sayles vs. American Funds Inflation | Loomis Sayles vs. American Funds Inflation |
| Pimco Trends vs. Ab Municipal Bond | Pimco Trends vs. Loomis Sayles Inflation | Pimco Trends vs. Fidelity Sai Inflationfocused | Pimco Trends vs. Tiaa Cref Inflation Link |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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