Correlation Between Loomis Sayles and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Loomis Sayles 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 Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Bond and Loomis Sayles Bond, you can compare the effects of market volatilities on Loomis Sayles and Loomis Sayles 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 Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Loomis Sayles.
Diversification Opportunities for Loomis Sayles and Loomis Sayles
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Loomis and Loomis is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Bond and Loomis Sayles Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Bond 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 Bond are associated (or correlated) with Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Bond has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Loomis Sayles go up and down completely randomly.
Pair Corralation between Loomis Sayles and Loomis Sayles
Assuming the 90 days horizon Loomis Sayles Bond is expected to generate 1.01 times more return on investment than Loomis Sayles. However, Loomis Sayles is 1.01 times more volatile than Loomis Sayles Bond. It trades about 0.2 of its potential returns per unit of risk. Loomis Sayles Bond is currently generating about 0.19 per unit of risk. If you would invest 1,116 in Loomis Sayles Bond on August 29, 2024 and sell it today you would earn a total of 75.00 from holding Loomis Sayles Bond or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Bond vs. Loomis Sayles Bond
Performance |
| Timeline |
| Loomis Sayles Bond |
| Loomis Sayles Bond |
Loomis Sayles and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Loomis Sayles
The main advantage of trading using opposite Loomis Sayles and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| Loomis Sayles vs. Mid Cap Value Profund | Loomis Sayles vs. Boston Partners Small | Loomis Sayles vs. Hennessy Nerstone Mid | Loomis Sayles vs. Mutual Of America |
| Loomis Sayles vs. Ab Bond Inflation | Loomis Sayles vs. Black Oak Emerging | Loomis Sayles vs. Vanguard Emerging Markets | Loomis Sayles vs. Commodities Strategy Fund |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |