Correlation Between Easterly Snow and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Easterly Snow 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 Easterly Snow and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Easterly Snow Longshort and Loomis Sayles Bond, you can compare the effects of market volatilities on Easterly Snow 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 Easterly Snow with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easterly Snow and Loomis Sayles.
Diversification Opportunities for Easterly Snow and Loomis Sayles
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Easterly and Loomis is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Easterly Snow Longshort and Loomis Sayles Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Bond and Easterly Snow 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 Easterly Snow Longshort 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 Bond has no effect on the direction of Easterly Snow i.e., Easterly Snow and Loomis Sayles go up and down completely randomly.
Pair Corralation between Easterly Snow and Loomis Sayles
Assuming the 90 days horizon Easterly Snow is expected to generate 1.77 times less return on investment than Loomis Sayles. In addition to that, Easterly Snow is 3.74 times more volatile than Loomis Sayles Bond. It trades about 0.03 of its total potential returns per unit of risk. Loomis Sayles Bond is currently generating about 0.18 per unit of volatility. If you would invest 1,121 in Loomis Sayles Bond on September 13, 2024 and sell it today you would earn a total of 64.00 from holding Loomis Sayles Bond or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easterly Snow Longshort vs. Loomis Sayles Bond
Performance |
| Timeline |
| Easterly Snow Longshort |
| Loomis Sayles Bond |
Easterly Snow and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easterly Snow and Loomis Sayles
The main advantage of trading using opposite Easterly Snow and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easterly Snow 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.| Easterly Snow vs. Easterly Snow Small | Easterly Snow vs. Vanguard Windsor Fund | Easterly Snow vs. Pimco Dynamic Income | Easterly Snow vs. Fidelity Magellan Fund |
| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Bond |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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