Correlation Between Loomis Sayles and Western Asset
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Western Asset 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 Western Asset 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 Western Asset Oregon, you can compare the effects of market volatilities on Loomis Sayles and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Western Asset.
Diversification Opportunities for Loomis Sayles and Western Asset
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loomis and Western is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Western Asset Oregon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Oregon 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Oregon has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Western Asset go up and down completely randomly.
Pair Corralation between Loomis Sayles and Western Asset
Assuming the 90 days horizon Loomis Sayles Inflation is expected to generate 1.3 times more return on investment than Western Asset. However, Loomis Sayles is 1.3 times more volatile than Western Asset Oregon. It trades about 0.07 of its potential returns per unit of risk. Western Asset Oregon is currently generating about 0.06 per unit of risk. If you would invest 942.00 in Loomis Sayles Inflation on September 15, 2024 and sell it today you would earn a total of 22.00 from holding Loomis Sayles Inflation or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Inflation vs. Western Asset Oregon
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Western Asset Oregon |
Loomis Sayles and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Western Asset
The main advantage of trading using opposite Loomis Sayles and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset'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 |
| Western Asset vs. Loomis Sayles Inflation | Western Asset vs. Arrow Managed Futures | Western Asset vs. Ab Bond Inflation | Western Asset vs. Ab Bond 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |