Correlation Between Nova Fund and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Nova Fund 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 Nova Fund and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nova Fund Class and Loomis Sayles Limited, you can compare the effects of market volatilities on Nova Fund 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 Nova Fund with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nova Fund and Loomis Sayles.
Diversification Opportunities for Nova Fund and Loomis Sayles
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nova and Loomis is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Nova Fund Class and Loomis Sayles Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Limited and Nova Fund 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 Nova Fund Class 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 Limited has no effect on the direction of Nova Fund i.e., Nova Fund and Loomis Sayles go up and down completely randomly.
Pair Corralation between Nova Fund and Loomis Sayles
Assuming the 90 days horizon Nova Fund Class is expected to generate 9.25 times more return on investment than Loomis Sayles. However, Nova Fund is 9.25 times more volatile than Loomis Sayles Limited. It trades about 0.12 of its potential returns per unit of risk. Loomis Sayles Limited is currently generating about 0.16 per unit of risk. If you would invest 9,117 in Nova Fund Class on September 1, 2024 and sell it today you would earn a total of 1,790 from holding Nova Fund Class or generate 19.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nova Fund Class vs. Loomis Sayles Limited
Performance |
| Timeline |
| Nova Fund Class |
| Loomis Sayles Limited |
Nova Fund and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nova Fund and Loomis Sayles
The main advantage of trading using opposite Nova Fund and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nova Fund 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.| Nova Fund vs. Touchstone Ultra Short | Nova Fund vs. Angel Oak Ultrashort | Nova Fund vs. Goldman Sachs Short Term | Nova Fund vs. Siit Ultra Short |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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