Correlation Between Mainstay Large and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Mainstay Large 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 Mainstay Large and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Large Cap and Loomis Sayles Small, you can compare the effects of market volatilities on Mainstay Large 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 Mainstay Large with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Loomis Sayles.
Diversification Opportunities for Mainstay Large and Loomis Sayles
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Loomis is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Large Cap and Loomis Sayles Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Small and Mainstay Large 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 Mainstay Large Cap 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 Small has no effect on the direction of Mainstay Large i.e., Mainstay Large and Loomis Sayles go up and down completely randomly.
Pair Corralation between Mainstay Large and Loomis Sayles
Assuming the 90 days horizon Mainstay Large is expected to generate 1.76 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Mainstay Large Cap is 1.64 times less risky than Loomis Sayles. It trades about 0.32 of its potential returns per unit of risk. Loomis Sayles Small is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 2,481 in Loomis Sayles Small on September 1, 2024 and sell it today you would earn a total of 316.00 from holding Loomis Sayles Small or generate 12.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Large Cap vs. Loomis Sayles Small
Performance |
| Timeline |
| Mainstay Large Cap |
| Loomis Sayles Small |
Mainstay Large and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Large and Loomis Sayles
The main advantage of trading using opposite Mainstay Large and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large 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.| Mainstay Large vs. Qs Large Cap | Mainstay Large vs. Legg Mason Bw | Mainstay Large vs. Federated Kaufmann Large | Mainstay Large vs. Jhancock Disciplined Value |
| Loomis Sayles vs. Mainstay Large Cap | Loomis Sayles vs. Mfs Value Fund | Loomis Sayles vs. Harbor Capital Appreciation | Loomis Sayles vs. Goldman Sachs Small |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |