Correlation Between Siit Dynamic and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Siit Dynamic 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 Dynamic 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 Dynamic Asset and Loomis Sayles Small, you can compare the effects of market volatilities on Siit Dynamic 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 Dynamic with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Dynamic and Loomis Sayles.
Diversification Opportunities for Siit Dynamic and Loomis Sayles
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siit and Loomis is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Siit Dynamic Asset and Loomis Sayles Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Small and Siit Dynamic 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 Dynamic Asset 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 Small has no effect on the direction of Siit Dynamic i.e., Siit Dynamic and Loomis Sayles go up and down completely randomly.
Pair Corralation between Siit Dynamic and Loomis Sayles
Assuming the 90 days horizon Siit Dynamic is expected to generate 1.73 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Siit Dynamic Asset is 1.63 times less risky than Loomis Sayles. It trades about 0.05 of its potential returns per unit of risk. Loomis Sayles Small is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,905 in Loomis Sayles Small on September 3, 2024 and sell it today you would earn a total of 777.00 from holding Loomis Sayles Small or generate 40.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Dynamic Asset vs. Loomis Sayles Small
Performance |
| Timeline |
| Siit Dynamic Asset |
| Loomis Sayles Small |
Siit Dynamic and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Dynamic and Loomis Sayles
The main advantage of trading using opposite Siit Dynamic and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Dynamic 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 Dynamic vs. Columbia Large Cap | Siit Dynamic vs. Siit Large Cap | Siit Dynamic vs. Janus Growth And | Siit Dynamic vs. Siit Sp 500 |
| Loomis Sayles vs. Loomis Sayles Small | Loomis Sayles vs. Loomis Sayles Small | Loomis Sayles vs. Calvert Small Cap | Loomis Sayles vs. T Rowe Price |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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