Correlation Between Loomis Sayles and Gabelli Convertible
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Gabelli Convertible 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 Gabelli Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Smallmid and Gabelli Convertible And, you can compare the effects of market volatilities on Loomis Sayles and Gabelli Convertible 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 Gabelli Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Gabelli Convertible.
Diversification Opportunities for Loomis Sayles and Gabelli Convertible
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Loomis and Gabelli is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Smallmid and Gabelli Convertible And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Convertible And 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 Smallmid are associated (or correlated) with Gabelli Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Convertible And has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Gabelli Convertible go up and down completely randomly.
Pair Corralation between Loomis Sayles and Gabelli Convertible
Assuming the 90 days horizon Loomis Sayles is expected to generate 1.03 times less return on investment than Gabelli Convertible. But when comparing it to its historical volatility, Loomis Sayles Smallmid is 1.04 times less risky than Gabelli Convertible. It trades about 0.11 of its potential returns per unit of risk. Gabelli Convertible And is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 348.00 in Gabelli Convertible And on September 1, 2024 and sell it today you would earn a total of 55.00 from holding Gabelli Convertible And or generate 15.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Smallmid vs. Gabelli Convertible And
Performance |
| Timeline |
| Loomis Sayles Smallmid |
| Gabelli Convertible And |
Loomis Sayles and Gabelli Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Gabelli Convertible
The main advantage of trading using opposite Loomis Sayles and Gabelli Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Gabelli Convertible 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 Gabelli Convertible will offset losses from the drop in Gabelli Convertible'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 Small |
| Gabelli Convertible vs. Gabelli Global Small | Gabelli Convertible vs. MFS Investment Grade | Gabelli Convertible vs. Eaton Vance National | Gabelli Convertible vs. GAMCO Natural Resources |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |