Correlation Between Siit High and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Siit High 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 High 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 High Yield and Loomis Sayles International, you can compare the effects of market volatilities on Siit High 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 High with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Loomis Sayles.
Diversification Opportunities for Siit High and Loomis Sayles
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Loomis is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Loomis Sayles International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Intern and Siit High 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 High Yield 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 Intern has no effect on the direction of Siit High i.e., Siit High and Loomis Sayles go up and down completely randomly.
Pair Corralation between Siit High and Loomis Sayles
Assuming the 90 days horizon Siit High is expected to generate 2.7 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Siit High Yield is 4.52 times less risky than Loomis Sayles. It trades about 0.17 of its potential returns per unit of risk. Loomis Sayles International is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,086 in Loomis Sayles International on August 31, 2024 and sell it today you would earn a total of 20.00 from holding Loomis Sayles International or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Loomis Sayles International
Performance |
| Timeline |
| Siit High Yield |
| Loomis Sayles Intern |
Siit High and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Loomis Sayles
The main advantage of trading using opposite Siit High and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High 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 High vs. Vanguard High Yield Corporate | Siit High vs. Vanguard High Yield Porate | Siit High vs. Blackrock Hi Yld | Siit High vs. Blackrock High Yield |
| Loomis Sayles vs. Blackrock High Yield | Loomis Sayles vs. Pace High Yield | Loomis Sayles vs. Siit High Yield | Loomis Sayles vs. Mesirow Financial High |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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