Correlation Between Pimco Income and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Pimco Income 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 Pimco Income and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Income Fund and Loomis Sayles Strategic, you can compare the effects of market volatilities on Pimco Income 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 Pimco Income with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Income and Loomis Sayles.
Diversification Opportunities for Pimco Income and Loomis Sayles
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pimco and Loomis is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Income Fund and Loomis Sayles Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Strategic and Pimco Income 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 Pimco Income Fund 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 Strategic has no effect on the direction of Pimco Income i.e., Pimco Income and Loomis Sayles go up and down completely randomly.
Pair Corralation between Pimco Income and Loomis Sayles
Assuming the 90 days horizon Pimco Income is expected to generate 1.63 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Pimco Income Fund is 1.22 times less risky than Loomis Sayles. It trades about 0.15 of its potential returns per unit of risk. Loomis Sayles Strategic is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,154 in Loomis Sayles Strategic on September 13, 2024 and sell it today you would earn a total of 76.00 from holding Loomis Sayles Strategic or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Income Fund vs. Loomis Sayles Strategic
Performance |
| Timeline |
| Pimco Income |
| Loomis Sayles Strategic |
Pimco Income and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Income and Loomis Sayles
The main advantage of trading using opposite Pimco Income and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Income 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.| Pimco Income vs. Pimco Rae Worldwide | Pimco Income vs. Pimco Rae Worldwide | Pimco Income vs. Pimco Rae Worldwide | Pimco Income vs. Pimco Rae Worldwide |
| Loomis Sayles vs. Pace Smallmedium Growth | Loomis Sayles vs. T Rowe Price | Loomis Sayles vs. Franklin Growth Opportunities | Loomis Sayles vs. Chase Growth Fund |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |