Correlation Between Loomis Sayles and Ivy Asset
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Ivy Asset 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 Loomis Sayles and Ivy Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Strategic and Ivy Asset Strategy, you can compare the effects of market volatilities on Loomis Sayles and Ivy Asset 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 Loomis Sayles with a short position of Ivy Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Ivy Asset.
Diversification Opportunities for Loomis Sayles and Ivy Asset
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loomis and Ivy is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Strategic and Ivy Asset Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Asset Strategy and Loomis Sayles 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 Loomis Sayles Strategic are associated (or correlated) with Ivy Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Asset Strategy has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Ivy Asset go up and down completely randomly.
Pair Corralation between Loomis Sayles and Ivy Asset
Assuming the 90 days horizon Loomis Sayles is expected to generate 1.83 times less return on investment than Ivy Asset. But when comparing it to its historical volatility, Loomis Sayles Strategic is 1.94 times less risky than Ivy Asset. It trades about 0.17 of its potential returns per unit of risk. Ivy Asset Strategy is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,904 in Ivy Asset Strategy on October 20, 2024 and sell it today you would earn a total of 33.00 from holding Ivy Asset Strategy or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Loomis Sayles Strategic vs. Ivy Asset Strategy
Performance |
| Timeline |
| Loomis Sayles Strategic |
| Ivy Asset Strategy |
Loomis Sayles and Ivy Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Ivy Asset
The main advantage of trading using opposite Loomis Sayles and Ivy Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Ivy Asset 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 Ivy Asset will offset losses from the drop in Ivy Asset's long position.| Loomis Sayles vs. Nexpoint Real Estate | Loomis Sayles vs. Columbia Real Estate | Loomis Sayles vs. Jhancock Real Estate | Loomis Sayles vs. Texton Property |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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