Correlation Between Msift High and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Msift High 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 Msift High and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Msift High Yield and Loomis Sayles Bond, you can compare the effects of market volatilities on Msift High 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 Msift High with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Msift High and Loomis Sayles.
Diversification Opportunities for Msift High and Loomis Sayles
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Msift and Loomis is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Msift High Yield 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 Msift High 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 Msift High Yield 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 Msift High i.e., Msift High and Loomis Sayles go up and down completely randomly.
Pair Corralation between Msift High and Loomis Sayles
Assuming the 90 days horizon Msift High Yield is expected to generate 0.67 times more return on investment than Loomis Sayles. However, Msift High Yield is 1.5 times less risky than Loomis Sayles. It trades about 0.17 of its potential returns per unit of risk. Loomis Sayles Bond is currently generating about 0.08 per unit of risk. If you would invest 707.00 in Msift High Yield on August 30, 2024 and sell it today you would earn a total of 158.00 from holding Msift High Yield or generate 22.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Msift High Yield vs. Loomis Sayles Bond
Performance |
| Timeline |
| Msift High Yield |
| Loomis Sayles Bond |
Msift High and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Msift High and Loomis Sayles
The main advantage of trading using opposite Msift High and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Msift High 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.| Msift High vs. Barings Active Short | Msift High vs. Ambrus Core Bond | Msift High vs. Kinetics Market Opportunities | Msift High vs. Sterling Capital Short |
| Loomis Sayles vs. Mid Cap Value Profund | Loomis Sayles vs. Boston Partners Small | Loomis Sayles vs. Hennessy Nerstone Mid | Loomis Sayles vs. Mutual Of America |
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 Stocks Directory module to find actively traded stocks across global markets.
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