Correlation Between Loomis Sayles and Transamerica Funds
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Transamerica Funds 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 Transamerica Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles High and Transamerica Funds , you can compare the effects of market volatilities on Loomis Sayles and Transamerica Funds 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 Transamerica Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Transamerica Funds.
Diversification Opportunities for Loomis Sayles and Transamerica Funds
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loomis and Transamerica is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles High and Transamerica Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica Funds 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 High are associated (or correlated) with Transamerica Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica Funds has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Transamerica Funds go up and down completely randomly.
Pair Corralation between Loomis Sayles and Transamerica Funds
Assuming the 90 days horizon Loomis Sayles High is expected to generate 1.01 times more return on investment than Transamerica Funds. However, Loomis Sayles is 1.01 times more volatile than Transamerica Funds . It trades about 0.08 of its potential returns per unit of risk. Transamerica Funds is currently generating about 0.0 per unit of risk. If you would invest 320.00 in Loomis Sayles High on September 4, 2024 and sell it today you would earn a total of 48.00 from holding Loomis Sayles High or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 57.69% |
| Values | Daily Returns |
Loomis Sayles High vs. Transamerica Funds
Performance |
| Timeline |
| Loomis Sayles High |
| Transamerica Funds |
Loomis Sayles and Transamerica Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Transamerica Funds
The main advantage of trading using opposite Loomis Sayles and Transamerica Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Transamerica Funds 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 Transamerica Funds will offset losses from the drop in Transamerica Funds' 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 |
| Transamerica Funds vs. Vanguard Total Stock | Transamerica Funds vs. Vanguard 500 Index | Transamerica Funds vs. Vanguard Total Stock | Transamerica Funds vs. Vanguard Total Stock |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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