Correlation Between Loomis Sayles and Ab International
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Ab International 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 Ab International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Small and Ab International Value, you can compare the effects of market volatilities on Loomis Sayles and Ab International 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 Ab International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Ab International.
Diversification Opportunities for Loomis Sayles and Ab International
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Loomis and ABIYX is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Small and Ab International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab International Value 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 Small are associated (or correlated) with Ab International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab International Value has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Ab International go up and down completely randomly.
Pair Corralation between Loomis Sayles and Ab International
Assuming the 90 days horizon Loomis Sayles is expected to generate 1.38 times less return on investment than Ab International. In addition to that, Loomis Sayles is 1.62 times more volatile than Ab International Value. It trades about 0.02 of its total potential returns per unit of risk. Ab International Value is currently generating about 0.04 per unit of volatility. If you would invest 1,273 in Ab International Value on August 30, 2024 and sell it today you would earn a total of 196.00 from holding Ab International Value or generate 15.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Small vs. Ab International Value
Performance |
| Timeline |
| Loomis Sayles Small |
| Ab International Value |
Loomis Sayles and Ab International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Ab International
The main advantage of trading using opposite Loomis Sayles and Ab International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Ab International 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 Ab International will offset losses from the drop in Ab International's long position.| Loomis Sayles vs. Vanguard Small Cap Index | Loomis Sayles vs. T Rowe Price | Loomis Sayles vs. HUMANA INC | Loomis Sayles vs. Aquagold International |
| Ab International vs. HUMANA INC | Ab International vs. Aquagold International | Ab International vs. Barloworld Ltd ADR | Ab International 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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