Correlation Between Loomis Sayles and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Ep Emerging 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 Ep Emerging 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 Ep Emerging Markets, you can compare the effects of market volatilities on Loomis Sayles and Ep Emerging 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 Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Ep Emerging.
Diversification Opportunities for Loomis Sayles and Ep Emerging
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loomis and EPASX is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Strategic and Ep Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ep Emerging Markets 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 Ep Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ep Emerging Markets has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Ep Emerging go up and down completely randomly.
Pair Corralation between Loomis Sayles and Ep Emerging
Assuming the 90 days horizon Loomis Sayles Strategic is expected to generate 0.31 times more return on investment than Ep Emerging. However, Loomis Sayles Strategic is 3.27 times less risky than Ep Emerging. It trades about 0.19 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about 0.02 per unit of risk. If you would invest 1,155 in Loomis Sayles Strategic on September 3, 2024 and sell it today you would earn a total of 76.00 from holding Loomis Sayles Strategic or generate 6.58% 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. Ep Emerging Markets
Performance |
| Timeline |
| Loomis Sayles Strategic |
| Ep Emerging Markets |
Loomis Sayles and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Ep Emerging
The main advantage of trading using opposite Loomis Sayles and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Ep Emerging 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 Ep Emerging will offset losses from the drop in Ep Emerging's long position.| Loomis Sayles vs. Baird Smallmid Cap | Loomis Sayles vs. Chartwell Small Cap | Loomis Sayles vs. Small Cap Value | Loomis Sayles vs. Us Small Cap |
| Ep Emerging vs. Wasatch Small Cap | Ep Emerging vs. Small Cap Stock | Ep Emerging vs. Davenport Small Cap | Ep Emerging vs. Sentinel Small Pany |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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