Correlation Between Loomis Sayles and Small Company
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Small Company 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 Small Company into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Small and Small Pany Fund, you can compare the effects of market volatilities on Loomis Sayles and Small Company 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 Small Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Small Company.
Diversification Opportunities for Loomis Sayles and Small Company
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loomis and Small is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Small and Small Pany Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Pany 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 Small are associated (or correlated) with Small Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Pany Fund has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Small Company go up and down completely randomly.
Pair Corralation between Loomis Sayles and Small Company
Assuming the 90 days horizon Loomis Sayles Small is expected to generate 1.27 times more return on investment than Small Company. However, Loomis Sayles is 1.27 times more volatile than Small Pany Fund. It trades about 0.05 of its potential returns per unit of risk. Small Pany Fund is currently generating about 0.03 per unit of risk. If you would invest 1,905 in Loomis Sayles Small on September 3, 2024 and sell it today you would earn a total of 777.00 from holding Loomis Sayles Small or generate 40.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Small vs. Small Pany Fund
Performance |
| Timeline |
| Loomis Sayles Small |
| Small Pany Fund |
Loomis Sayles and Small Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Small Company
The main advantage of trading using opposite Loomis Sayles and Small Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Small Company 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 Small Company will offset losses from the drop in Small Company's long position.| Loomis Sayles vs. Loomis Sayles Small | Loomis Sayles vs. Loomis Sayles Small | Loomis Sayles vs. Calvert Small Cap | Loomis Sayles vs. T Rowe Price |
| Small Company vs. Vanguard Small Cap Index | Small Company vs. Vanguard Small Cap Index | Small Company vs. Vanguard Small Cap Index | Small Company vs. Vanguard Small Cap Index |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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