Correlation Between Neuberger Berman and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman 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 Neuberger Berman and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Large and Loomis Sayles Small, you can compare the effects of market volatilities on Neuberger Berman 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 Neuberger Berman with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Loomis Sayles.
Diversification Opportunities for Neuberger Berman and Loomis Sayles
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Neuberger and Loomis is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Large 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 Neuberger Berman 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 Neuberger Berman Large 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 Neuberger Berman i.e., Neuberger Berman and Loomis Sayles go up and down completely randomly.
Pair Corralation between Neuberger Berman and Loomis Sayles
Assuming the 90 days horizon Neuberger Berman is expected to generate 2.36 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Neuberger Berman Large is 2.62 times less risky than Loomis Sayles. It trades about 0.35 of its potential returns per unit of risk. Loomis Sayles Small is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,329 in Loomis Sayles Small on September 2, 2024 and sell it today you would earn a total of 252.00 from holding Loomis Sayles Small or generate 10.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Large vs. Loomis Sayles Small
Performance |
| Timeline |
| Neuberger Berman Large |
| Loomis Sayles Small |
Neuberger Berman and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Loomis Sayles
The main advantage of trading using opposite Neuberger Berman and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman 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.| Neuberger Berman vs. Neuberger Berman Guardian | Neuberger Berman vs. Neuberger Berman Focus | Neuberger Berman vs. Neuberger Berman Genesis | Neuberger Berman vs. Neuberger Berman Socially |
| Loomis Sayles vs. Ssga International Stock | Loomis Sayles vs. Northern Small Cap | Loomis Sayles vs. Loomis Sayles Small | Loomis Sayles vs. American Beacon Large |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |