Correlation Between Loomis Sayles and Aquagold International
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Aquagold 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 Aquagold International 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 Aquagold International, you can compare the effects of market volatilities on Loomis Sayles and Aquagold 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 Aquagold International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Aquagold International.
Diversification Opportunities for Loomis Sayles and Aquagold International
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loomis and Aquagold is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Growth and Aquagold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquagold International 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 Aquagold International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquagold International has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Aquagold International go up and down completely randomly.
Pair Corralation between Loomis Sayles and Aquagold International
Assuming the 90 days horizon Loomis Sayles Growth is expected to generate 0.08 times more return on investment than Aquagold International. However, Loomis Sayles Growth is 11.77 times less risky than Aquagold International. It trades about -0.2 of its potential returns per unit of risk. Aquagold International is currently generating about -0.21 per unit of risk. If you would invest 3,072 in Loomis Sayles Growth on November 29, 2024 and sell it today you would lose (119.00) from holding Loomis Sayles Growth or give up 3.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Loomis Sayles Growth vs. Aquagold International
Performance |
| Timeline |
| Loomis Sayles Growth |
| Aquagold International |
Loomis Sayles and Aquagold International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Aquagold International
The main advantage of trading using opposite Loomis Sayles and Aquagold International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Aquagold 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 Aquagold International will offset losses from the drop in Aquagold International's long position.| Loomis Sayles vs. American Mutual Fund | Loomis Sayles vs. Metropolitan West Total | Loomis Sayles vs. John Hancock Disciplined | Loomis Sayles vs. Edgewood Growth Fund |
| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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