Correlation Between Natixis Oakmark and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Natixis Oakmark and Loomis Sayles 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 Natixis Oakmark and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natixis Oakmark and Loomis Sayles Investment, you can compare the effects of market volatilities on Natixis Oakmark and Loomis Sayles 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 Natixis Oakmark with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Oakmark and Loomis Sayles.
Diversification Opportunities for Natixis Oakmark and Loomis Sayles
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Natixis and Loomis is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Oakmark and Loomis Sayles Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Investment and Natixis Oakmark 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 Natixis Oakmark are associated (or correlated) with Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Investment has no effect on the direction of Natixis Oakmark i.e., Natixis Oakmark and Loomis Sayles go up and down completely randomly.
Pair Corralation between Natixis Oakmark and Loomis Sayles
Assuming the 90 days horizon Natixis Oakmark is expected to generate 2.45 times more return on investment than Loomis Sayles. However, Natixis Oakmark is 2.45 times more volatile than Loomis Sayles Investment. It trades about 0.09 of its potential returns per unit of risk. Loomis Sayles Investment is currently generating about 0.04 per unit of risk. If you would invest 2,415 in Natixis Oakmark on August 31, 2024 and sell it today you would earn a total of 1,205 from holding Natixis Oakmark or generate 49.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natixis Oakmark vs. Loomis Sayles Investment
Performance |
| Timeline |
| Natixis Oakmark |
| Loomis Sayles Investment |
Natixis Oakmark and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natixis Oakmark and Loomis Sayles
The main advantage of trading using opposite Natixis Oakmark and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Oakmark position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| Natixis Oakmark vs. Dunham Porategovernment Bond | Natixis Oakmark vs. Prudential Government Income | Natixis Oakmark vs. Franklin Government Money | Natixis Oakmark vs. Inverse Government Long |
| Loomis Sayles vs. Fidelity Advisor Gold | Loomis Sayles vs. Goldman Sachs Clean | Loomis Sayles vs. Oppenheimer Gold Special | Loomis Sayles vs. Vy Goldman Sachs |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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