Correlation Between Loomis AB and Brady
Can any of the company-specific risk be diversified away by investing in both Loomis AB and Brady 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 AB and Brady into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis AB and Brady, you can compare the effects of market volatilities on Loomis AB and Brady 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 AB with a short position of Brady. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis AB and Brady.
Diversification Opportunities for Loomis AB and Brady
Good diversification
The 3 months correlation between Loomis and Brady is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Loomis AB and Brady in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brady and Loomis AB 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 AB are associated (or correlated) with Brady. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brady has no effect on the direction of Loomis AB i.e., Loomis AB and Brady go up and down completely randomly.
Pair Corralation between Loomis AB and Brady
Assuming the 90 days horizon Loomis AB is expected to under-perform the Brady. In addition to that, Loomis AB is 1.76 times more volatile than Brady. It trades about 0.0 of its total potential returns per unit of risk. Brady is currently generating about 0.09 per unit of volatility. If you would invest 4,665 in Brady on October 24, 2024 and sell it today you would earn a total of 2,746 from holding Brady or generate 58.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.64% |
| Values | Daily Returns |
Loomis AB vs. Brady
Performance |
| Timeline |
| Loomis AB |
| Brady |
Loomis AB and Brady Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis AB and Brady
The main advantage of trading using opposite Loomis AB and Brady positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis AB position performs unexpectedly, Brady 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 Brady will offset losses from the drop in Brady's long position.| Loomis AB vs. Allegion PLC | Loomis AB vs. MSA Safety | Loomis AB vs. Resideo Technologies | Loomis AB vs. NL Industries |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |