Correlation Between Lsv Value and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Lsv Value and Loomis Sayles 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 Lsv Value and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lsv Value Equity and Loomis Sayles Growth, you can compare the effects of market volatilities on Lsv Value and Loomis Sayles 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 Lsv Value with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lsv Value and Loomis Sayles.
Diversification Opportunities for Lsv Value and Loomis Sayles
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lsv and Loomis is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Lsv Value Equity and Loomis Sayles Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Growth and Lsv Value 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 Lsv Value Equity are associated (or correlated) with Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Growth has no effect on the direction of Lsv Value i.e., Lsv Value and Loomis Sayles go up and down completely randomly.
Pair Corralation between Lsv Value and Loomis Sayles
Assuming the 90 days horizon Lsv Value Equity is expected to generate 0.91 times more return on investment than Loomis Sayles. However, Lsv Value Equity is 1.1 times less risky than Loomis Sayles. It trades about 0.25 of its potential returns per unit of risk. Loomis Sayles Growth is currently generating about 0.19 per unit of risk. If you would invest 2,877 in Lsv Value Equity on August 31, 2024 and sell it today you would earn a total of 165.00 from holding Lsv Value Equity or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lsv Value Equity vs. Loomis Sayles Growth
Performance |
| Timeline |
| Lsv Value Equity |
| Loomis Sayles Growth |
Lsv Value and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lsv Value and Loomis Sayles
The main advantage of trading using opposite Lsv Value and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lsv Value position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| Lsv Value vs. Vanguard Value Index | Lsv Value vs. Dodge Cox Stock | Lsv Value vs. American Mutual Fund | Lsv Value vs. American Funds American |
| Loomis Sayles vs. Diamond Hill Large | Loomis Sayles vs. Loomis Sayles Growth | Loomis Sayles vs. Loomis Sayles Growth | Loomis Sayles vs. Natixis Equity Opportunities |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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