Correlation Between Loomis Sayles and Oppenheimer International
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Oppenheimer 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 Oppenheimer 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 Oppenheimer International Bond, you can compare the effects of market volatilities on Loomis Sayles and Oppenheimer 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 Oppenheimer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Oppenheimer International.
Diversification Opportunities for Loomis Sayles and Oppenheimer International
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loomis and Oppenheimer is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Strategic and Oppenheimer International Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer 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 Oppenheimer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer International has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Oppenheimer International go up and down completely randomly.
Pair Corralation between Loomis Sayles and Oppenheimer International
Assuming the 90 days horizon Loomis Sayles Strategic is expected to generate 0.41 times more return on investment than Oppenheimer International. However, Loomis Sayles Strategic is 2.45 times less risky than Oppenheimer International. It trades about 0.02 of its potential returns per unit of risk. Oppenheimer International Bond is currently generating about -0.02 per unit of risk. If you would invest 1,224 in Loomis Sayles Strategic on August 25, 2024 and sell it today you would earn a total of 1.00 from holding Loomis Sayles Strategic or generate 0.08% 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. Oppenheimer International Bond
Performance |
| Timeline |
| Loomis Sayles Strategic |
| Oppenheimer International |
Loomis Sayles and Oppenheimer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Oppenheimer International
The main advantage of trading using opposite Loomis Sayles and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Oppenheimer 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 Oppenheimer International will offset losses from the drop in Oppenheimer International'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 |
| Oppenheimer International vs. The Hartford Small | Oppenheimer International vs. Omni Small Cap Value | Oppenheimer International vs. Small Pany Growth | Oppenheimer International vs. M3sixty Capital Small |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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