Correlation Between Loomis Sayles and Lazard Us
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Lazard Us 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 Lazard Us 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 Lazard Small Mid Cap, you can compare the effects of market volatilities on Loomis Sayles and Lazard Us 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 Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Lazard Us.
Diversification Opportunities for Loomis Sayles and Lazard Us
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loomis and Lazard is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Small and Lazard Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Small Mid 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 Lazard Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Small Mid has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Lazard Us go up and down completely randomly.
Pair Corralation between Loomis Sayles and Lazard Us
Assuming the 90 days horizon Loomis Sayles Small is expected to generate 1.01 times more return on investment than Lazard Us. However, Loomis Sayles is 1.01 times more volatile than Lazard Small Mid Cap. It trades about 0.12 of its potential returns per unit of risk. Lazard Small Mid Cap is currently generating about 0.12 per unit of risk. If you would invest 2,367 in Loomis Sayles Small on August 28, 2024 and sell it today you would earn a total of 233.00 from holding Loomis Sayles Small or generate 9.84% 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. Lazard Small Mid Cap
Performance |
| Timeline |
| Loomis Sayles Small |
| Lazard Small Mid |
Loomis Sayles and Lazard Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Lazard Us
The main advantage of trading using opposite Loomis Sayles and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Lazard Us 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 Lazard Us will offset losses from the drop in Lazard Us' long position.| Loomis Sayles vs. Ab International Value | Loomis Sayles vs. Clearbridge Small Cap | Loomis Sayles vs. Loomis Sayles Small | Loomis Sayles vs. Loomis Sayles Bond |
| Lazard Us vs. Lazard Small Mid Cap | Lazard Us vs. Lazard International Equity | Lazard Us vs. Lazard International Small | Lazard Us vs. Loomis Sayles 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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