Correlation Between Loomis Sayles and Aig Government
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Aig Government 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 Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Senior and Aig Government Money, you can compare the effects of market volatilities on Loomis Sayles and Aig Government 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 Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Aig Government.
Diversification Opportunities for Loomis Sayles and Aig Government
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Loomis and Aig is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Senior and Aig Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aig Government Money 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 Senior are associated (or correlated) with Aig Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aig Government Money has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Aig Government go up and down completely randomly.
Pair Corralation between Loomis Sayles and Aig Government
Assuming the 90 days horizon Loomis Sayles Senior is expected to generate 0.64 times more return on investment than Aig Government. However, Loomis Sayles Senior is 1.56 times less risky than Aig Government. It trades about 0.31 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.07 per unit of risk. If you would invest 816.00 in Loomis Sayles Senior on August 29, 2024 and sell it today you would earn a total of 9.00 from holding Loomis Sayles Senior or generate 1.1% 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 Senior vs. Aig Government Money
Performance |
| Timeline |
| Loomis Sayles Senior |
| Aig Government Money |
Loomis Sayles and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Aig Government
The main advantage of trading using opposite Loomis Sayles and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Aig Government 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 Aig Government will offset losses from the drop in Aig Government's long position.| Loomis Sayles vs. Dimensional Retirement Income | Loomis Sayles vs. Jp Morgan Smartretirement | Loomis Sayles vs. Pgim Conservative Retirement | Loomis Sayles vs. Qs Moderate Growth |
| Aig Government vs. Simt Multi Asset Accumulation | Aig Government vs. Simt Small Cap | Aig Government vs. Tax Free Conservative Income | Aig Government vs. Tax Free Conservative |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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