Correlation Between Loomis Sayles and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Amg Managers 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 Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Global and Amg Managers Loomis, you can compare the effects of market volatilities on Loomis Sayles and Amg Managers 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 Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Amg Managers.
Diversification Opportunities for Loomis Sayles and Amg Managers
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loomis and Amg is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Global and Amg Managers Loomis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Loomis 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 Global are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Loomis has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Amg Managers go up and down completely randomly.
Pair Corralation between Loomis Sayles and Amg Managers
Assuming the 90 days horizon Loomis Sayles Global is expected to under-perform the Amg Managers. In addition to that, Loomis Sayles is 1.3 times more volatile than Amg Managers Loomis. It trades about -0.02 of its total potential returns per unit of risk. Amg Managers Loomis is currently generating about 0.05 per unit of volatility. If you would invest 2,171 in Amg Managers Loomis on August 31, 2024 and sell it today you would earn a total of 9.00 from holding Amg Managers Loomis or generate 0.41% 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 Global vs. Amg Managers Loomis
Performance |
| Timeline |
| Loomis Sayles Global |
| Amg Managers Loomis |
Loomis Sayles and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Amg Managers
The main advantage of trading using opposite Loomis Sayles and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. T Rowe Price | Loomis Sayles vs. Westcore Plus Bond | Loomis Sayles vs. Aberdeen Global High |
| Amg Managers vs. Pear Tree Polaris | Amg Managers vs. Kinetics Small Cap | Amg Managers vs. Tcw Total Return | Amg Managers vs. Thornburg International Value |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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