Correlation Between Siit Real and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Siit Real 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 Siit Real and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Real Return and Loomis Sayles Inflation, you can compare the effects of market volatilities on Siit Real 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 Siit Real with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Real and Loomis Sayles.
Diversification Opportunities for Siit Real and Loomis Sayles
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Loomis is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Siit Real Return and Loomis Sayles Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Inflation and Siit Real 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 Siit Real Return 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 Inflation has no effect on the direction of Siit Real i.e., Siit Real and Loomis Sayles go up and down completely randomly.
Pair Corralation between Siit Real and Loomis Sayles
Assuming the 90 days horizon Siit Real Return is expected to generate 0.48 times more return on investment than Loomis Sayles. However, Siit Real Return is 2.07 times less risky than Loomis Sayles. It trades about 0.14 of its potential returns per unit of risk. Loomis Sayles Inflation is currently generating about -0.06 per unit of risk. If you would invest 917.00 in Siit Real Return on August 27, 2024 and sell it today you would earn a total of 3.00 from holding Siit Real Return or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Real Return vs. Loomis Sayles Inflation
Performance |
| Timeline |
| Siit Real Return |
| Loomis Sayles Inflation |
Siit Real and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Real and Loomis Sayles
The main advantage of trading using opposite Siit Real and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Real 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.| Siit Real vs. Nuveen Winslow Large Cap | Siit Real vs. Qs Large Cap | Siit Real vs. Rational Strategic Allocation | Siit Real vs. Old Westbury Large |
| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Small |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |