Correlation Between Loomis Sayles and Westcore Plus
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Westcore Plus 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 Westcore Plus 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 Westcore Plus Bond, you can compare the effects of market volatilities on Loomis Sayles and Westcore Plus 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 Westcore Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Westcore Plus.
Diversification Opportunities for Loomis Sayles and Westcore Plus
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loomis and Westcore is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Bond and Westcore Plus Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westcore Plus 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 Westcore Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westcore Plus Bond has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Westcore Plus go up and down completely randomly.
Pair Corralation between Loomis Sayles and Westcore Plus
Assuming the 90 days horizon Loomis Sayles Bond is expected to generate 0.84 times more return on investment than Westcore Plus. However, Loomis Sayles Bond is 1.19 times less risky than Westcore Plus. It trades about 0.19 of its potential returns per unit of risk. Westcore Plus Bond is currently generating about 0.1 per unit of risk. If you would invest 1,111 in Loomis Sayles Bond on August 29, 2024 and sell it today you would earn a total of 74.00 from holding Loomis Sayles Bond or generate 6.66% 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. Westcore Plus Bond
Performance |
| Timeline |
| Loomis Sayles Bond |
| Westcore Plus Bond |
Loomis Sayles and Westcore Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Westcore Plus
The main advantage of trading using opposite Loomis Sayles and Westcore Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Westcore Plus 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 Westcore Plus will offset losses from the drop in Westcore Plus' long position.| Loomis Sayles vs. Pimco Income Fund | Loomis Sayles vs. HUMANA INC | Loomis Sayles vs. Aquagold International | Loomis Sayles vs. Barloworld Ltd ADR |
| Westcore Plus vs. Pimco Income Fund | Westcore Plus vs. HUMANA INC | Westcore Plus vs. Aquagold International | Westcore Plus vs. Barloworld Ltd ADR |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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