Correlation Between Loomis Sayles and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Aberdeen Global 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 Aberdeen Global 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 Aberdeen Global High, you can compare the effects of market volatilities on Loomis Sayles and Aberdeen Global 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 Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Aberdeen Global.
Diversification Opportunities for Loomis Sayles and Aberdeen Global
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loomis and Aberdeen is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Bond and Aberdeen Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global High 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 Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global High has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Aberdeen Global go up and down completely randomly.
Pair Corralation between Loomis Sayles and Aberdeen Global
Assuming the 90 days horizon Loomis Sayles Bond is expected to under-perform the Aberdeen Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Loomis Sayles Bond is 1.24 times less risky than Aberdeen Global. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Aberdeen Global High is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 775.00 in Aberdeen Global High on August 25, 2024 and sell it today you would earn a total of 5.00 from holding Aberdeen Global High or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Bond vs. Aberdeen Global High
Performance |
| Timeline |
| Loomis Sayles Bond |
| Aberdeen Global High |
Loomis Sayles and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Aberdeen Global
The main advantage of trading using opposite Loomis Sayles and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Aberdeen Global 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 Aberdeen Global will offset losses from the drop in Aberdeen Global's long position.| Loomis Sayles vs. Metropolitan West Total | Loomis Sayles vs. Harbor Bond Fund | Loomis Sayles vs. Doubleline Total Return | Loomis Sayles vs. Fidelity Advisor Floating |
| Aberdeen Global vs. Metropolitan West High | Aberdeen Global vs. Westcore Plus Bond | Aberdeen Global vs. Loomis Sayles Bond | Aberdeen Global vs. Equity Series Class |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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