Correlation Between Stringer Growth and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Stringer Growth 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 Stringer Growth and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stringer Growth Fund and Loomis Sayles Inflation, you can compare the effects of market volatilities on Stringer Growth 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 Stringer Growth with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stringer Growth and Loomis Sayles.
Diversification Opportunities for Stringer Growth and Loomis Sayles
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stringer and Loomis is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Stringer Growth Fund and Loomis Sayles Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Inflation and Stringer Growth 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 Stringer Growth Fund 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 Inflation has no effect on the direction of Stringer Growth i.e., Stringer Growth and Loomis Sayles go up and down completely randomly.
Pair Corralation between Stringer Growth and Loomis Sayles
Assuming the 90 days horizon Stringer Growth Fund is expected to generate 1.64 times more return on investment than Loomis Sayles. However, Stringer Growth is 1.64 times more volatile than Loomis Sayles Inflation. It trades about 0.1 of its potential returns per unit of risk. Loomis Sayles Inflation is currently generating about -0.03 per unit of risk. If you would invest 1,266 in Stringer Growth Fund on August 31, 2024 and sell it today you would earn a total of 35.00 from holding Stringer Growth Fund or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stringer Growth Fund vs. Loomis Sayles Inflation
Performance |
| Timeline |
| Stringer Growth |
| Loomis Sayles Inflation |
Stringer Growth and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stringer Growth and Loomis Sayles
The main advantage of trading using opposite Stringer Growth and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stringer Growth 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.| Stringer Growth vs. Ep Emerging Markets | Stringer Growth vs. Barings Emerging Markets | Stringer Growth vs. Western Asset Diversified | Stringer Growth vs. Ab All Market |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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