Correlation Between Loomis Sayles and Blackrock
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Blackrock 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 Blackrock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Limited and Blackrock Bd Fd, you can compare the effects of market volatilities on Loomis Sayles and Blackrock 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 Blackrock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Blackrock.
Diversification Opportunities for Loomis Sayles and Blackrock
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loomis and Blackrock is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Limited and Blackrock Bd Fd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Bd Fd 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 Limited are associated (or correlated) with Blackrock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Bd Fd has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Blackrock go up and down completely randomly.
Pair Corralation between Loomis Sayles and Blackrock
Assuming the 90 days horizon Loomis Sayles is expected to generate 1.63 times less return on investment than Blackrock. But when comparing it to its historical volatility, Loomis Sayles Limited is 2.41 times less risky than Blackrock. It trades about 0.14 of its potential returns per unit of risk. Blackrock Bd Fd is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 903.00 in Blackrock Bd Fd on September 1, 2024 and sell it today you would earn a total of 93.00 from holding Blackrock Bd Fd or generate 10.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Limited vs. Blackrock Bd Fd
Performance |
| Timeline |
| Loomis Sayles Limited |
| Blackrock Bd Fd |
Loomis Sayles and Blackrock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Blackrock
The main advantage of trading using opposite Loomis Sayles and Blackrock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Blackrock 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 Blackrock will offset losses from the drop in Blackrock'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 |
| Blackrock vs. International Investors Gold | Blackrock vs. Gabelli Gold Fund | Blackrock vs. Short Precious Metals | Blackrock vs. Invesco Gold Special |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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