Correlation Between Loomis Sayles and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Eaton Vance 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 Eaton Vance 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 Eaton Vance Large Cap, you can compare the effects of market volatilities on Loomis Sayles and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Eaton Vance.
Diversification Opportunities for Loomis Sayles and Eaton Vance
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loomis and Eaton is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Strategic and Eaton Vance Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Large 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Large has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Eaton Vance go up and down completely randomly.
Pair Corralation between Loomis Sayles and Eaton Vance
Assuming the 90 days horizon Loomis Sayles is expected to generate 50.51 times less return on investment than Eaton Vance. But when comparing it to its historical volatility, Loomis Sayles Strategic is 4.58 times less risky than Eaton Vance. It trades about 0.02 of its potential returns per unit of risk. Eaton Vance Large Cap is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,668 in Eaton Vance Large Cap on August 25, 2024 and sell it today you would earn a total of 115.00 from holding Eaton Vance Large Cap or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Strategic vs. Eaton Vance Large Cap
Performance |
| Timeline |
| Loomis Sayles Strategic |
| Eaton Vance Large |
Loomis Sayles and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Eaton Vance
The main advantage of trading using opposite Loomis Sayles and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Loomis Sayles vs. Asg Managed Futures | Loomis Sayles vs. Asg Managed Futures | Loomis Sayles vs. Natixis Oakmark | Loomis Sayles vs. Natixis Oakmark International |
| Eaton Vance vs. Lord Abbett Diversified | Eaton Vance vs. Archer Balanced Fund | Eaton Vance vs. Materials Portfolio Fidelity | Eaton Vance vs. Vanguard Strategic Small Cap |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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