Correlation Between Loomis Sayles and Red Oak
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Red Oak 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 Red Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Investment and Red Oak Technology, you can compare the effects of market volatilities on Loomis Sayles and Red Oak 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 Red Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Red Oak.
Diversification Opportunities for Loomis Sayles and Red Oak
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Loomis and Red is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Investment and Red Oak Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Red Oak Technology 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 Investment are associated (or correlated) with Red Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Red Oak Technology has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Red Oak go up and down completely randomly.
Pair Corralation between Loomis Sayles and Red Oak
Assuming the 90 days horizon Loomis Sayles is expected to generate 3.83 times less return on investment than Red Oak. But when comparing it to its historical volatility, Loomis Sayles Investment is 3.29 times less risky than Red Oak. It trades about 0.07 of its potential returns per unit of risk. Red Oak Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,527 in Red Oak Technology on September 12, 2024 and sell it today you would earn a total of 1,421 from holding Red Oak Technology or generate 40.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Loomis Sayles Investment vs. Red Oak Technology
Performance |
| Timeline |
| Loomis Sayles Investment |
| Red Oak Technology |
Loomis Sayles and Red Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Red Oak
The main advantage of trading using opposite Loomis Sayles and Red Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Red Oak 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 Red Oak will offset losses from the drop in Red Oak's long position.| Loomis Sayles vs. Red Oak Technology | Loomis Sayles vs. Hennessy Technology Fund | Loomis Sayles vs. Janus Global Technology | Loomis Sayles vs. Global Technology Portfolio |
| Red Oak vs. Vanguard Information Technology | Red Oak vs. Technology Portfolio Technology | Red Oak vs. Fidelity Select Semiconductors | Red Oak vs. Software And It |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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