Correlation Between Loomis Sayles and Henderson International
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Henderson International 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 Henderson International 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 Henderson International Opportunities, you can compare the effects of market volatilities on Loomis Sayles and Henderson International 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 Henderson International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Henderson International.
Diversification Opportunities for Loomis Sayles and Henderson International
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loomis and Henderson is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Strategic and Henderson International Opport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henderson International 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 Henderson International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henderson International has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Henderson International go up and down completely randomly.
Pair Corralation between Loomis Sayles and Henderson International
If you would invest 1,143 in Loomis Sayles Strategic on August 29, 2024 and sell it today you would earn a total of 84.00 from holding Loomis Sayles Strategic or generate 7.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Loomis Sayles Strategic vs. Henderson International Opport
Performance |
| Timeline |
| Loomis Sayles Strategic |
| Henderson International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Loomis Sayles and Henderson International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Henderson International
The main advantage of trading using opposite Loomis Sayles and Henderson International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Henderson International 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 Henderson International will offset losses from the drop in Henderson International's long position.| Loomis Sayles vs. Maryland Tax Free Bond | Loomis Sayles vs. Vanguard High Yield Tax Exempt | Loomis Sayles vs. Dreyfusstandish Global Fixed | Loomis Sayles vs. Rationalpier 88 Convertible |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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