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 High, 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
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pimco and Loomis is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and Loomis Sayles High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles High 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 High 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 1.91 times more volatile than Loomis Sayles High. It trades about -0.03 of its total potential returns per unit of risk. Loomis Sayles High is currently generating about 0.13 per unit of volatility. If you would invest 747.00 in Loomis Sayles High on August 26, 2024 and sell it today you would earn a total of 153.00 from holding Loomis Sayles High or generate 20.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Trends Managed vs. Loomis Sayles High
Performance |
| Timeline |
| Pimco Trends Managed |
| Loomis Sayles High |
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. Ab All Market | Pimco Trends vs. Legg Mason Partners | Pimco Trends vs. Crossmark Steward Equity | Pimco Trends vs. Aqr Long Short Equity |
| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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