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 Bond, 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
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and Loomis is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Income Fund and Loomis Sayles Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Bond 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 Bond 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 Fund is expected to generate 0.87 times more return on investment than Loomis Sayles. However, Pimco Income Fund is 1.15 times less risky than Loomis Sayles. It trades about 0.09 of its potential returns per unit of risk. Loomis Sayles Bond is currently generating about 0.08 per unit of risk. If you would invest 929.00 in Pimco Income Fund on August 30, 2024 and sell it today you would earn a total of 135.00 from holding Pimco Income Fund or generate 14.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Income Fund vs. Loomis Sayles Bond
Performance |
| Timeline |
| Pimco Income |
| Loomis Sayles Bond |
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. Virtus Seix Government | Pimco Income vs. Us Government Plus | Pimco Income vs. Dws Government Money | Pimco Income vs. Us Government Securities |
| Loomis Sayles vs. Mid Cap Value Profund | Loomis Sayles vs. Boston Partners Small | Loomis Sayles vs. Hennessy Nerstone Mid | Loomis Sayles vs. Mutual Of America |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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