Correlation Between Loomis Sayles and Vy(r) Clarion
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Vy(r) Clarion 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 Vy(r) Clarion 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 Vy Clarion Real, you can compare the effects of market volatilities on Loomis Sayles and Vy(r) Clarion 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 Vy(r) Clarion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Vy(r) Clarion.
Diversification Opportunities for Loomis Sayles and Vy(r) Clarion
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loomis and Vy(r) is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Strategic and Vy Clarion Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Clarion Real 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 Vy(r) Clarion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Clarion Real has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Vy(r) Clarion go up and down completely randomly.
Pair Corralation between Loomis Sayles and Vy(r) Clarion
Assuming the 90 days horizon Loomis Sayles Strategic is expected to generate 0.3 times more return on investment than Vy(r) Clarion. However, Loomis Sayles Strategic is 3.3 times less risky than Vy(r) Clarion. It trades about 0.09 of its potential returns per unit of risk. Vy Clarion Real is currently generating about 0.01 per unit of risk. If you would invest 1,042 in Loomis Sayles Strategic on November 9, 2024 and sell it today you would earn a total of 175.00 from holding Loomis Sayles Strategic or generate 16.79% 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. Vy Clarion Real
Performance |
| Timeline |
| Loomis Sayles Strategic |
| Vy Clarion Real |
Loomis Sayles and Vy(r) Clarion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Vy(r) Clarion
The main advantage of trading using opposite Loomis Sayles and Vy(r) Clarion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Vy(r) Clarion 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 Vy(r) Clarion will offset losses from the drop in Vy(r) Clarion's long position.| Loomis Sayles vs. Siit Emerging Markets | Loomis Sayles vs. Balanced Strategy Fund | Loomis Sayles vs. Franklin Emerging Market | Loomis Sayles vs. Nasdaq 100 2x Strategy |
| Vy(r) Clarion vs. Redwood Real Estate | Vy(r) Clarion vs. Voya Real Estate | Vy(r) Clarion vs. Neuberger Berman Real | Vy(r) Clarion vs. Tiaa Cref Real Estate |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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