Correlation Between Loomis Sayles and Jpmorgan Mid
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Jpmorgan Mid 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 Jpmorgan Mid 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 Jpmorgan Mid Cap, you can compare the effects of market volatilities on Loomis Sayles and Jpmorgan Mid 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 Jpmorgan Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Jpmorgan Mid.
Diversification Opportunities for Loomis Sayles and Jpmorgan Mid
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loomis and JPMORGAN is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Small and Jpmorgan Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Mid Cap 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 Jpmorgan Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Mid Cap has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Jpmorgan Mid go up and down completely randomly.
Pair Corralation between Loomis Sayles and Jpmorgan Mid
Assuming the 90 days horizon Loomis Sayles Small is expected to generate 1.74 times more return on investment than Jpmorgan Mid. However, Loomis Sayles is 1.74 times more volatile than Jpmorgan Mid Cap. It trades about 0.31 of its potential returns per unit of risk. Jpmorgan Mid Cap is currently generating about 0.38 per unit of risk. If you would invest 2,418 in Loomis Sayles Small on September 2, 2024 and sell it today you would earn a total of 262.00 from holding Loomis Sayles Small or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Small vs. Jpmorgan Mid Cap
Performance |
| Timeline |
| Loomis Sayles Small |
| Jpmorgan Mid Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Loomis Sayles and Jpmorgan Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Jpmorgan Mid
The main advantage of trading using opposite Loomis Sayles and Jpmorgan Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Jpmorgan Mid 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 Jpmorgan Mid will offset losses from the drop in Jpmorgan Mid's long position.| Loomis Sayles vs. Ssga International Stock | Loomis Sayles vs. Northern Small Cap | Loomis Sayles vs. American Beacon Large |
| Jpmorgan Mid vs. Legg Mason Bw | Jpmorgan Mid vs. Morningstar Unconstrained Allocation | Jpmorgan Mid vs. Old Westbury Large | Jpmorgan Mid vs. T Rowe Price |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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