Correlation Between Mid-cap Value and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Mid-cap 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 Mid-cap 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 Mid Cap Value Profund and Loomis Sayles Bond, you can compare the effects of market volatilities on Mid-cap 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 Mid-cap Value with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid-cap Value and Loomis Sayles.
Diversification Opportunities for Mid-cap Value and Loomis Sayles
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mid-cap and Loomis is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Value Profund and Loomis Sayles Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Bond and Mid-cap 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 Mid Cap Value Profund 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 Bond has no effect on the direction of Mid-cap Value i.e., Mid-cap Value and Loomis Sayles go up and down completely randomly.
Pair Corralation between Mid-cap Value and Loomis Sayles
Assuming the 90 days horizon Mid Cap Value Profund is expected to generate 4.11 times more return on investment than Loomis Sayles. However, Mid-cap Value is 4.11 times more volatile than Loomis Sayles Bond. It trades about 0.11 of its potential returns per unit of risk. Loomis Sayles Bond is currently generating about 0.19 per unit of risk. If you would invest 8,254 in Mid Cap Value Profund on September 1, 2024 and sell it today you would earn a total of 1,285 from holding Mid Cap Value Profund or generate 15.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Mid Cap Value Profund vs. Loomis Sayles Bond
Performance |
| Timeline |
| Mid Cap Value |
| Loomis Sayles Bond |
Mid-cap Value and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid-cap Value and Loomis Sayles
The main advantage of trading using opposite Mid-cap Value and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid-cap 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.| Mid-cap Value vs. Growth Opportunities Fund | Mid-cap Value vs. Nationwide Growth Fund | Mid-cap Value vs. Eip Growth And | Mid-cap Value vs. Legg Mason Partners |
| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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