Correlation Between Loomis Sayles and Bondbloxx ETF
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Bondbloxx ETF 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 Bondbloxx ETF 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 Bondbloxx ETF Trust, you can compare the effects of market volatilities on Loomis Sayles and Bondbloxx ETF 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 Bondbloxx ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Bondbloxx ETF.
Diversification Opportunities for Loomis Sayles and Bondbloxx ETF
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Loomis and Bondbloxx is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Growth and Bondbloxx ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bondbloxx ETF Trust 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 Bondbloxx ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bondbloxx ETF Trust has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Bondbloxx ETF go up and down completely randomly.
Pair Corralation between Loomis Sayles and Bondbloxx ETF
Assuming the 90 days horizon Loomis Sayles Growth is expected to generate 7.72 times more return on investment than Bondbloxx ETF. However, Loomis Sayles is 7.72 times more volatile than Bondbloxx ETF Trust. It trades about 0.09 of its potential returns per unit of risk. Bondbloxx ETF Trust is currently generating about 0.1 per unit of risk. If you would invest 1,908 in Loomis Sayles Growth on October 25, 2024 and sell it today you would earn a total of 1,192 from holding Loomis Sayles Growth or generate 62.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Growth vs. Bondbloxx ETF Trust
Performance |
| Timeline |
| Loomis Sayles Growth |
| Bondbloxx ETF Trust |
Loomis Sayles and Bondbloxx ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Bondbloxx ETF
The main advantage of trading using opposite Loomis Sayles and Bondbloxx ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Bondbloxx ETF 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 Bondbloxx ETF will offset losses from the drop in Bondbloxx ETF'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 |
| Bondbloxx ETF vs. Bondbloxx ETF Trust | Bondbloxx ETF vs. Bondbloxx ETF Trust | Bondbloxx ETF vs. Bondbloxx ETF Trust | Bondbloxx ETF vs. Bondbloxx ETF Trust |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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