Correlation Between Loomis Sayles and First Eagle
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and First Eagle 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 First Eagle 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 First Eagle Overseas, you can compare the effects of market volatilities on Loomis Sayles and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and First Eagle.
Diversification Opportunities for Loomis Sayles and First Eagle
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loomis and First is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Strategic and First Eagle Overseas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Overseas 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Overseas has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and First Eagle go up and down completely randomly.
Pair Corralation between Loomis Sayles and First Eagle
Assuming the 90 days horizon Loomis Sayles Strategic is expected to generate 0.56 times more return on investment than First Eagle. However, Loomis Sayles Strategic is 1.78 times less risky than First Eagle. It trades about 0.11 of its potential returns per unit of risk. First Eagle Overseas is currently generating about 0.05 per unit of risk. If you would invest 1,067 in Loomis Sayles Strategic on September 2, 2024 and sell it today you would earn a total of 164.00 from holding Loomis Sayles Strategic or generate 15.37% 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. First Eagle Overseas
Performance |
| Timeline |
| Loomis Sayles Strategic |
| First Eagle Overseas |
Loomis Sayles and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and First Eagle
The main advantage of trading using opposite Loomis Sayles and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Loomis Sayles vs. Ep Emerging Markets | Loomis Sayles vs. Rbc Emerging Markets | Loomis Sayles vs. Pnc Emerging Markets | Loomis Sayles vs. Sp Midcap Index |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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