Correlation Between Loomis Sayles and American Century
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and American Century 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 American Century into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Growth and American Century One, you can compare the effects of market volatilities on Loomis Sayles and American Century 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 American Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and American Century.
Diversification Opportunities for Loomis Sayles and American Century
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loomis and American is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Growth and American Century One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Century One 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 Growth are associated (or correlated) with American Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Century One has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and American Century go up and down completely randomly.
Pair Corralation between Loomis Sayles and American Century
Assuming the 90 days horizon Loomis Sayles Growth is expected to generate 1.8 times more return on investment than American Century. However, Loomis Sayles is 1.8 times more volatile than American Century One. It trades about 0.19 of its potential returns per unit of risk. American Century One is currently generating about 0.21 per unit of risk. If you would invest 2,928 in Loomis Sayles Growth on August 31, 2024 and sell it today you would earn a total of 141.00 from holding Loomis Sayles Growth or generate 4.82% 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 Growth vs. American Century One
Performance |
| Timeline |
| Loomis Sayles Growth |
| American Century One |
Loomis Sayles and American Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and American Century
The main advantage of trading using opposite Loomis Sayles and American Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, American Century 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 American Century will offset losses from the drop in American Century's long position.| Loomis Sayles vs. Europacific Growth Fund | Loomis Sayles vs. Washington Mutual Investors | Loomis Sayles vs. Capital World Growth | Loomis Sayles vs. HUMANA INC |
| American Century vs. Vanguard Target Retirement | American Century vs. American Funds 2065 | American Century vs. American Funds 2065 | American Century vs. American Funds 2065 |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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