Correlation Between Loomis Sayles and Ssga International
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Ssga International 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 Ssga International 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 Ssga International Stock, you can compare the effects of market volatilities on Loomis Sayles and Ssga International 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 Ssga International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Ssga International.
Diversification Opportunities for Loomis Sayles and Ssga International
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Loomis and Ssga is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Small and Ssga International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga International Stock 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 Ssga International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga International Stock has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Ssga International go up and down completely randomly.
Pair Corralation between Loomis Sayles and Ssga International
Assuming the 90 days horizon Loomis Sayles is expected to generate 2.5 times less return on investment than Ssga International. In addition to that, Loomis Sayles is 1.79 times more volatile than Ssga International Stock. It trades about 0.01 of its total potential returns per unit of risk. Ssga International Stock is currently generating about 0.06 per unit of volatility. If you would invest 894.00 in Ssga International Stock on August 30, 2024 and sell it today you would earn a total of 238.00 from holding Ssga International Stock or generate 26.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Small vs. Ssga International Stock
Performance |
| Timeline |
| Loomis Sayles Small |
| Ssga International Stock |
Loomis Sayles and Ssga International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Ssga International
The main advantage of trading using opposite Loomis Sayles and Ssga International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Ssga International 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 Ssga International will offset losses from the drop in Ssga International'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 |
| Ssga International vs. HUMANA INC | Ssga International vs. Aquagold International | Ssga International vs. Barloworld Ltd ADR | Ssga International vs. Morningstar Unconstrained Allocation |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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