Correlation Between Loomis Sayles and Harbor Bond
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Harbor 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 Harbor 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 Harbor Bond Fund, you can compare the effects of market volatilities on Loomis Sayles and Harbor 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 Harbor Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Harbor Bond.
Diversification Opportunities for Loomis Sayles and Harbor Bond
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loomis and Harbor is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Bond and Harbor Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Bond Fund 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 Harbor Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Bond Fund has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Harbor Bond go up and down completely randomly.
Pair Corralation between Loomis Sayles and Harbor Bond
Assuming the 90 days horizon Loomis Sayles is expected to generate 1.18 times less return on investment than Harbor Bond. But when comparing it to its historical volatility, Loomis Sayles Bond is 1.74 times less risky than Harbor Bond. It trades about 0.13 of its potential returns per unit of risk. Harbor Bond Fund is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,016 in Harbor Bond Fund on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Harbor Bond Fund or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Bond vs. Harbor Bond Fund
Performance |
| Timeline |
| Loomis Sayles Bond |
| Harbor Bond Fund |
Loomis Sayles and Harbor Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Harbor Bond
The main advantage of trading using opposite Loomis Sayles and Harbor Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Harbor 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 Harbor Bond will offset losses from the drop in Harbor Bond'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 |
| Harbor Bond vs. Harbor Vertible Securities | Harbor Bond vs. Harbor Diversified International | Harbor Bond vs. Harbor International Fund | Harbor Bond vs. Harbor International Small |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |