Correlation Between Loomis Sayles and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Franklin Mutual 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 Franklin Mutual 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 Franklin Mutual European, you can compare the effects of market volatilities on Loomis Sayles and Franklin Mutual 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 Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Franklin Mutual.
Diversification Opportunities for Loomis Sayles and Franklin Mutual
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Loomis and Franklin is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Growth and Franklin Mutual European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual European 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 Franklin Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual European has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Franklin Mutual go up and down completely randomly.
Pair Corralation between Loomis Sayles and Franklin Mutual
Assuming the 90 days horizon Loomis Sayles Growth is expected to generate 1.41 times more return on investment than Franklin Mutual. However, Loomis Sayles is 1.41 times more volatile than Franklin Mutual European. It trades about 0.19 of its potential returns per unit of risk. Franklin Mutual European is currently generating about -0.1 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Growth vs. Franklin Mutual European
Performance |
| Timeline |
| Loomis Sayles Growth |
| Franklin Mutual European |
Loomis Sayles and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Franklin Mutual
The main advantage of trading using opposite Loomis Sayles and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Franklin Mutual 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 Franklin Mutual will offset losses from the drop in Franklin Mutual'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 |
| Franklin Mutual vs. Loomis Sayles Growth | Franklin Mutual vs. Nuance Mid Cap | Franklin Mutual vs. HUMANA INC | Franklin Mutual vs. Aquagold International |
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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