Correlation Between Loomis Sayles and International Investors
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and International Investors 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 International Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Institutional and International Investors Gold, you can compare the effects of market volatilities on Loomis Sayles and International Investors 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 International Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and International Investors.
Diversification Opportunities for Loomis Sayles and International Investors
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Loomis and INTERNATIONAL is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Institutional and International Investors Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Investors 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 Institutional are associated (or correlated) with International Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Investors has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and International Investors go up and down completely randomly.
Pair Corralation between Loomis Sayles and International Investors
Assuming the 90 days horizon Loomis Sayles is expected to generate 1.44 times less return on investment than International Investors. But when comparing it to its historical volatility, Loomis Sayles Institutional is 8.72 times less risky than International Investors. It trades about 0.31 of its potential returns per unit of risk. International Investors Gold is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 889.00 in International Investors Gold on September 1, 2024 and sell it today you would earn a total of 88.00 from holding International Investors Gold or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Loomis Sayles Institutional vs. International Investors Gold
Performance |
| Timeline |
| Loomis Sayles Instit |
| International Investors |
Loomis Sayles and International Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and International Investors
The main advantage of trading using opposite Loomis Sayles and International Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, International Investors 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 International Investors will offset losses from the drop in International Investors' long position.| Loomis Sayles vs. International Investors Gold | Loomis Sayles vs. Vy Goldman Sachs | Loomis Sayles vs. Global Gold Fund | Loomis Sayles vs. Oppenheimer Gold Special |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |