Correlation Between Loomis Sayles and American Funds
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and American Funds 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 American Funds 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 American Funds Inflation, you can compare the effects of market volatilities on Loomis Sayles and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and American Funds.
Diversification Opportunities for Loomis Sayles and American Funds
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loomis and AMERICAN is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and American Funds Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Inflation 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Inflation has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and American Funds go up and down completely randomly.
Pair Corralation between Loomis Sayles and American Funds
Assuming the 90 days horizon Loomis Sayles Inflation is expected to generate 1.26 times more return on investment than American Funds. However, Loomis Sayles is 1.26 times more volatile than American Funds Inflation. It trades about 0.13 of its potential returns per unit of risk. American Funds Inflation is currently generating about 0.09 per unit of risk. If you would invest 958.00 in Loomis Sayles Inflation on September 4, 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 Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Loomis Sayles Inflation vs. American Funds Inflation
Performance |
| Timeline |
| Loomis Sayles Inflation |
| American Funds Inflation |
Loomis Sayles and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and American Funds
The main advantage of trading using opposite Loomis Sayles and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Loomis Sayles vs. American Funds Inflation | Loomis Sayles vs. T Rowe Price | Loomis Sayles vs. Goldman Sachs Access | Loomis Sayles vs. Blackrock Gbl Emerging |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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