Correlation Between Loomis Sayles and Equity Series
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Equity Series 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 Equity Series 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 Equity Series Class, you can compare the effects of market volatilities on Loomis Sayles and Equity Series 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 Equity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Equity Series.
Diversification Opportunities for Loomis Sayles and Equity Series
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Loomis and Equity is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Bond and Equity Series Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Series Class 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 Equity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Series Class has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Equity Series go up and down completely randomly.
Pair Corralation between Loomis Sayles and Equity Series
Assuming the 90 days horizon Loomis Sayles is expected to generate 2.05 times less return on investment than Equity Series. But when comparing it to its historical volatility, Loomis Sayles Bond is 1.98 times less risky than Equity Series. It trades about 0.1 of its potential returns per unit of risk. Equity Series Class is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,337 in Equity Series Class on August 26, 2024 and sell it today you would earn a total of 344.00 from holding Equity Series Class or generate 25.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Bond vs. Equity Series Class
Performance |
| Timeline |
| Loomis Sayles Bond |
| Equity Series Class |
Loomis Sayles and Equity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Equity Series
The main advantage of trading using opposite Loomis Sayles and Equity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Equity Series 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 Equity Series will offset losses from the drop in Equity Series' 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 |
| Equity Series vs. Large Cap Fund | Equity Series vs. Wasatch Large Cap | Equity Series vs. Westcore Plus Bond | Equity Series vs. Aberdeen Global High |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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