Correlation Between Sp Smallcap and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Sp Smallcap 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 Sp Smallcap and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sp Smallcap 600 and Loomis Sayles Smallmid, you can compare the effects of market volatilities on Sp Smallcap 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 Sp Smallcap with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sp Smallcap and Loomis Sayles.
Diversification Opportunities for Sp Smallcap and Loomis Sayles
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between RYSVX and Loomis is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sp Smallcap 600 and Loomis Sayles Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Smallmid and Sp Smallcap 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 Sp Smallcap 600 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 Smallmid has no effect on the direction of Sp Smallcap i.e., Sp Smallcap and Loomis Sayles go up and down completely randomly.
Pair Corralation between Sp Smallcap and Loomis Sayles
Assuming the 90 days horizon Sp Smallcap is expected to generate 1.34 times less return on investment than Loomis Sayles. In addition to that, Sp Smallcap is 1.29 times more volatile than Loomis Sayles Smallmid. It trades about 0.07 of its total potential returns per unit of risk. Loomis Sayles Smallmid is currently generating about 0.12 per unit of volatility. If you would invest 1,235 in Loomis Sayles Smallmid on November 3, 2024 and sell it today you would earn a total of 207.00 from holding Loomis Sayles Smallmid or generate 16.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sp Smallcap 600 vs. Loomis Sayles Smallmid
Performance |
| Timeline |
| Sp Smallcap 600 |
| Loomis Sayles Smallmid |
Sp Smallcap and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sp Smallcap and Loomis Sayles
The main advantage of trading using opposite Sp Smallcap and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sp Smallcap 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.| Sp Smallcap vs. Vanguard Small Cap Value | Sp Smallcap vs. Vanguard Small Cap Value | Sp Smallcap vs. Us Small Cap | Sp Smallcap vs. Us Targeted Value |
| Loomis Sayles vs. Ashmore Emerging Markets | Loomis Sayles vs. Aqr Tm Emerging | Loomis Sayles vs. Dodge Cox Emerging | Loomis Sayles vs. Barings Emerging Markets |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |