Correlation Between Pace Smallmedium and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Pace Smallmedium 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 Pace Smallmedium and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pace Smallmedium Growth and Loomis Sayles Global, you can compare the effects of market volatilities on Pace Smallmedium 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 Pace Smallmedium with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace Smallmedium and Loomis Sayles.
Diversification Opportunities for Pace Smallmedium and Loomis Sayles
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pace and Loomis is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Pace Smallmedium Growth and Loomis Sayles Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Global and Pace Smallmedium 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 Pace Smallmedium Growth 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 Global has no effect on the direction of Pace Smallmedium i.e., Pace Smallmedium and Loomis Sayles go up and down completely randomly.
Pair Corralation between Pace Smallmedium and Loomis Sayles
Assuming the 90 days horizon Pace Smallmedium Growth is expected to generate 3.83 times more return on investment than Loomis Sayles. However, Pace Smallmedium is 3.83 times more volatile than Loomis Sayles Global. It trades about 0.35 of its potential returns per unit of risk. Loomis Sayles Global is currently generating about -0.17 per unit of risk. If you would invest 1,259 in Pace Smallmedium Growth on August 26, 2024 and sell it today you would earn a total of 148.00 from holding Pace Smallmedium Growth or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pace Smallmedium Growth vs. Loomis Sayles Global
Performance |
| Timeline |
| Pace Smallmedium Growth |
| Loomis Sayles Global |
Pace Smallmedium and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace Smallmedium and Loomis Sayles
The main advantage of trading using opposite Pace Smallmedium and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace Smallmedium 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.| Pace Smallmedium vs. Aqr Managed Futures | Pace Smallmedium vs. Schwab Treasury Inflation | Pace Smallmedium vs. Lord Abbett Inflation | Pace Smallmedium vs. Ab Bond Inflation |
| Loomis Sayles vs. Qs Growth Fund | Loomis Sayles vs. Small Pany Growth | Loomis Sayles vs. Mid Cap Growth | Loomis Sayles vs. Pace Smallmedium Growth |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |