Correlation Between Loomis Sayles and Columbia Global
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Columbia Global 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 Columbia Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles High and Columbia Global Technology, you can compare the effects of market volatilities on Loomis Sayles and Columbia Global 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 Columbia Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Columbia Global.
Diversification Opportunities for Loomis Sayles and Columbia Global
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loomis and Columbia is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles High and Columbia Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Global Tech 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 High are associated (or correlated) with Columbia Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Global Tech has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Columbia Global go up and down completely randomly.
Pair Corralation between Loomis Sayles and Columbia Global
Assuming the 90 days horizon Loomis Sayles is expected to generate 1.48 times less return on investment than Columbia Global. But when comparing it to its historical volatility, Loomis Sayles High is 8.43 times less risky than Columbia Global. It trades about 0.34 of its potential returns per unit of risk. Columbia Global Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 8,188 in Columbia Global Technology on September 1, 2024 and sell it today you would earn a total of 866.00 from holding Columbia Global Technology or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Loomis Sayles High vs. Columbia Global Technology
Performance |
| Timeline |
| Loomis Sayles High |
| Columbia Global Tech |
Loomis Sayles and Columbia Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Columbia Global
The main advantage of trading using opposite Loomis Sayles and Columbia Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Columbia Global 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 Columbia Global will offset losses from the drop in Columbia Global's long position.| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond |
| Columbia Global vs. Columbia Small Cap | Columbia Global vs. Aquagold International | Columbia Global vs. Thrivent High Yield | Columbia Global vs. Morningstar Unconstrained Allocation |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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