Correlation Between Loomis Sayles and Templeton Foreign
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Templeton Foreign 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 Templeton Foreign 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 Templeton Foreign Fund, you can compare the effects of market volatilities on Loomis Sayles and Templeton Foreign 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 Templeton Foreign. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Templeton Foreign.
Diversification Opportunities for Loomis Sayles and Templeton Foreign
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Loomis and Templeton is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Growth and Templeton Foreign Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Foreign 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 Templeton Foreign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Foreign has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Templeton Foreign go up and down completely randomly.
Pair Corralation between Loomis Sayles and Templeton Foreign
Assuming the 90 days horizon Loomis Sayles Growth is expected to generate 1.38 times more return on investment than Templeton Foreign. However, Loomis Sayles is 1.38 times more volatile than Templeton Foreign Fund. It trades about 0.07 of its potential returns per unit of risk. Templeton Foreign Fund is currently generating about 0.05 per unit of risk. If you would invest 1,990 in Loomis Sayles Growth on September 2, 2024 and sell it today you would earn a total of 1,111 from holding Loomis Sayles Growth or generate 55.83% 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 Growth vs. Templeton Foreign Fund
Performance |
| Timeline |
| Loomis Sayles Growth |
| Templeton Foreign |
Loomis Sayles and Templeton Foreign Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Templeton Foreign
The main advantage of trading using opposite Loomis Sayles and Templeton Foreign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Templeton Foreign 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 Templeton Foreign will offset losses from the drop in Templeton Foreign's long position.| Loomis Sayles vs. Loomis Sayles Growth | Loomis Sayles vs. Diamond Hill Large | Loomis Sayles vs. Diamond Hill Large |
| Templeton Foreign vs. Franklin Mutual Beacon | Templeton Foreign vs. Templeton Developing Markets | Templeton Foreign vs. Franklin Mutual Global | Templeton Foreign vs. Franklin Mutual Global |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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