Correlation Between Loomis Sayles and Thrivent Small
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Thrivent Small 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 Thrivent Small 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 Thrivent Small Cap, you can compare the effects of market volatilities on Loomis Sayles and Thrivent Small 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 Thrivent Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Thrivent Small.
Diversification Opportunities for Loomis Sayles and Thrivent Small
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Loomis and Thrivent is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Thrivent Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Small Cap 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 Thrivent Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Small Cap has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Thrivent Small go up and down completely randomly.
Pair Corralation between Loomis Sayles and Thrivent Small
Assuming the 90 days horizon Loomis Sayles Inflation is expected to generate 0.27 times more return on investment than Thrivent Small. However, Loomis Sayles Inflation is 3.67 times less risky than Thrivent Small. It trades about 0.15 of its potential returns per unit of risk. Thrivent Small Cap is currently generating about -0.03 per unit of risk. If you would invest 957.00 in Loomis Sayles Inflation on September 15, 2024 and sell it today you would earn a total of 7.00 from holding Loomis Sayles Inflation or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Inflation vs. Thrivent Small Cap
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Thrivent Small Cap |
Loomis Sayles and Thrivent Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Thrivent Small
The main advantage of trading using opposite Loomis Sayles and Thrivent Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Thrivent Small 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 Thrivent Small will offset losses from the drop in Thrivent Small'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 |
| Thrivent Small vs. Thrivent Partner Worldwide | Thrivent Small vs. Thrivent Partner Worldwide | Thrivent Small vs. Thrivent Large Cap | Thrivent Small vs. Thrivent Limited Maturity |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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