Correlation Between Loomis Sayles and International Bond
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and International Bond 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 International Bond 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 International Bond Fund, you can compare the effects of market volatilities on Loomis Sayles and International Bond 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 International Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and International Bond.
Diversification Opportunities for Loomis Sayles and International Bond
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Loomis and International is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Bond and International Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International 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 International Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Bond has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and International Bond go up and down completely randomly.
Pair Corralation between Loomis Sayles and International Bond
If you would invest 1,181 in Loomis Sayles Bond on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Loomis Sayles Bond or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Loomis Sayles Bond vs. International Bond Fund
Performance |
| Timeline |
| Loomis Sayles Bond |
| International Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Loomis Sayles and International Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and International Bond
The main advantage of trading using opposite Loomis Sayles and International Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, International Bond 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 International Bond will offset losses from the drop in International Bond's long position.| Loomis Sayles vs. Pimco Income Fund | Loomis Sayles vs. HUMANA INC | Loomis Sayles vs. Aquagold International | Loomis Sayles vs. Barloworld Ltd ADR |
| International Bond vs. T Rowe Price | International Bond vs. Global Gold Fund | International Bond vs. Inflation Adjusted Bond Fund | International Bond vs. Loomis Sayles Global |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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