Correlation Between Loomis Sayles and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Neuberger Berman 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 Neuberger Berman 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 Neuberger Berman Large, you can compare the effects of market volatilities on Loomis Sayles and Neuberger Berman 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 Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Neuberger Berman.
Diversification Opportunities for Loomis Sayles and Neuberger Berman
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loomis and Neuberger is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Small and Neuberger Berman Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Large 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Large has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Neuberger Berman go up and down completely randomly.
Pair Corralation between Loomis Sayles and Neuberger Berman
Assuming the 90 days horizon Loomis Sayles Small is expected to generate 2.62 times more return on investment than Neuberger Berman. However, Loomis Sayles is 2.62 times more volatile than Neuberger Berman Large. It trades about 0.31 of its potential returns per unit of risk. Neuberger Berman Large is currently generating about 0.35 per unit of risk. If you would invest 2,329 in Loomis Sayles Small on September 2, 2024 and sell it today you would earn a total of 252.00 from holding Loomis Sayles Small or generate 10.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Small vs. Neuberger Berman Large
Performance |
| Timeline |
| Loomis Sayles Small |
| Neuberger Berman Large |
Loomis Sayles and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Neuberger Berman
The main advantage of trading using opposite Loomis Sayles and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman's long position.| Loomis Sayles vs. Ssga International Stock | Loomis Sayles vs. Northern Small Cap | Loomis Sayles vs. Loomis Sayles Small | Loomis Sayles vs. American Beacon Large |
| Neuberger Berman vs. Neuberger Berman Guardian | Neuberger Berman vs. Neuberger Berman Focus | Neuberger Berman vs. Neuberger Berman Genesis | Neuberger Berman vs. Neuberger Berman Socially |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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