Correlation Between Loomis Sayles and Nuance Mid
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Nuance Mid 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 Nuance Mid 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 Nuance Mid Cap, you can compare the effects of market volatilities on Loomis Sayles and Nuance Mid 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 Nuance Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Nuance Mid.
Diversification Opportunities for Loomis Sayles and Nuance Mid
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loomis and Nuance is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Growth and Nuance Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuance Mid Cap 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 Nuance Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuance Mid Cap has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Nuance Mid go up and down completely randomly.
Pair Corralation between Loomis Sayles and Nuance Mid
Assuming the 90 days horizon Loomis Sayles Growth is expected to generate 1.43 times more return on investment than Nuance Mid. However, Loomis Sayles is 1.43 times more volatile than Nuance Mid Cap. It trades about -0.11 of its potential returns per unit of risk. Nuance Mid Cap is currently generating about -0.18 per unit of risk. If you would invest 3,018 in Loomis Sayles Growth on November 28, 2024 and sell it today you would lose (74.00) from holding Loomis Sayles Growth or give up 2.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Growth vs. Nuance Mid Cap
Performance |
| Timeline |
| Loomis Sayles Growth |
| Nuance Mid Cap |
Loomis Sayles and Nuance Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Nuance Mid
The main advantage of trading using opposite Loomis Sayles and Nuance Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Nuance Mid 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 Nuance Mid will offset losses from the drop in Nuance Mid'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 |
| Nuance Mid vs. Loomis Sayles Growth | Nuance Mid vs. Gqg Partners Emerg | Nuance Mid vs. Midcap Fund Institutional | Nuance Mid vs. Brown Advisory Growth |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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