Correlation Between Loomis Sayles and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Simt Multi-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 Simt Multi-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 Simt Multi Asset Inflation, you can compare the effects of market volatilities on Loomis Sayles and Simt Multi-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 Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Simt Multi-asset.
Diversification Opportunities for Loomis Sayles and Simt Multi-asset
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loomis and Simt is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Simt Multi Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset 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 Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Loomis Sayles and Simt Multi-asset
Assuming the 90 days horizon Loomis Sayles Inflation is expected to under-perform the Simt Multi-asset. But the mutual fund apears to be less risky and, when comparing its historical volatility, Loomis Sayles Inflation is 1.02 times less risky than Simt Multi-asset. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Simt Multi Asset Inflation is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 797.00 in Simt Multi Asset Inflation on August 28, 2024 and sell it today you would earn a total of 3.00 from holding Simt Multi Asset Inflation or generate 0.38% 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. Simt Multi Asset Inflation
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Simt Multi Asset |
Loomis Sayles and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Simt Multi-asset
The main advantage of trading using opposite Loomis Sayles and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Simt Multi-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 Simt Multi-asset will offset losses from the drop in Simt Multi-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 Small |
| Simt Multi-asset vs. Simt Multi Asset Accumulation | Simt Multi-asset vs. Saat Market Growth | Simt Multi-asset vs. Simt Real Return | Simt Multi-asset vs. Simt Small Cap |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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