Correlation Between Loomis Sayles and Siit Equity
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Siit Equity 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 Siit Equity 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 Siit Equity Factor, you can compare the effects of market volatilities on Loomis Sayles and Siit Equity 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 Siit Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Siit Equity.
Diversification Opportunities for Loomis Sayles and Siit Equity
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loomis and Siit is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Smallmid and Siit Equity Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Equity Factor 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 Siit Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Equity Factor has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Siit Equity go up and down completely randomly.
Pair Corralation between Loomis Sayles and Siit Equity
Assuming the 90 days horizon Loomis Sayles Smallmid is expected to generate 1.27 times more return on investment than Siit Equity. However, Loomis Sayles is 1.27 times more volatile than Siit Equity Factor. It trades about 0.31 of its potential returns per unit of risk. Siit Equity Factor is currently generating about 0.25 per unit of risk. If you would invest 1,368 in Loomis Sayles Smallmid on November 3, 2024 and sell it today you would earn a total of 74.00 from holding Loomis Sayles Smallmid or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Loomis Sayles Smallmid vs. Siit Equity Factor
Performance |
| Timeline |
| Loomis Sayles Smallmid |
| Siit Equity Factor |
Loomis Sayles and Siit Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Siit Equity
The main advantage of trading using opposite Loomis Sayles and Siit Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Siit Equity 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 Siit Equity will offset losses from the drop in Siit Equity's long position.| Loomis Sayles vs. Ashmore Emerging Markets | Loomis Sayles vs. Aqr Tm Emerging | Loomis Sayles vs. Dodge Cox Emerging | Loomis Sayles vs. Barings Emerging Markets |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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