Correlation Between Pimco Trends and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Pimco Trends 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 Trends 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 Trends Managed and Loomis Sayles Institutional, you can compare the effects of market volatilities on Pimco Trends 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 Trends with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Loomis Sayles.
Diversification Opportunities for Pimco Trends and Loomis Sayles
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pimco and Loomis is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and Loomis Sayles Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Instit and Pimco Trends 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 Trends Managed 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 Instit has no effect on the direction of Pimco Trends i.e., Pimco Trends and Loomis Sayles go up and down completely randomly.
Pair Corralation between Pimco Trends and Loomis Sayles
Assuming the 90 days horizon Pimco Trends Managed is expected to under-perform the Loomis Sayles. In addition to that, Pimco Trends is 2.55 times more volatile than Loomis Sayles Institutional. It trades about -0.12 of its total potential returns per unit of risk. Loomis Sayles Institutional is currently generating about 0.31 per unit of volatility. If you would invest 556.00 in Loomis Sayles Institutional on September 1, 2024 and sell it today you would earn a total of 46.00 from holding Loomis Sayles Institutional or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Pimco Trends Managed vs. Loomis Sayles Institutional
Performance |
| Timeline |
| Pimco Trends Managed |
| Loomis Sayles Instit |
Pimco Trends and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Trends and Loomis Sayles
The main advantage of trading using opposite Pimco Trends and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends 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 Trends vs. Asg Managed Futures | Pimco Trends vs. Asg Managed Futures | Pimco Trends vs. Aqr Managed Futures | Pimco Trends vs. iMGP DBi Managed |
| Loomis Sayles vs. International Investors Gold | Loomis Sayles vs. Vy Goldman Sachs | Loomis Sayles vs. Global Gold Fund | Loomis Sayles vs. Oppenheimer Gold Special |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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