Correlation Between Mid Cap and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Mid Cap 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 Mid Cap and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth and Loomis Sayles Global, you can compare the effects of market volatilities on Mid Cap 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 Mid Cap with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and Loomis Sayles.
Diversification Opportunities for Mid Cap and Loomis Sayles
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mid and Loomis is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth and Loomis Sayles Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Global and Mid Cap 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 Mid Cap Growth 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 Global has no effect on the direction of Mid Cap i.e., Mid Cap and Loomis Sayles go up and down completely randomly.
Pair Corralation between Mid Cap and Loomis Sayles
Assuming the 90 days horizon Mid Cap Growth is expected to generate 3.27 times more return on investment than Loomis Sayles. However, Mid Cap is 3.27 times more volatile than Loomis Sayles Global. It trades about 0.39 of its potential returns per unit of risk. Loomis Sayles Global is currently generating about -0.17 per unit of risk. If you would invest 3,717 in Mid Cap Growth on August 26, 2024 and sell it today you would earn a total of 424.00 from holding Mid Cap Growth or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap Growth vs. Loomis Sayles Global
Performance |
| Timeline |
| Mid Cap Growth |
| Loomis Sayles Global |
Mid Cap and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Cap and Loomis Sayles
The main advantage of trading using opposite Mid Cap and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Cap 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.| Mid Cap vs. Touchstone Sustainability And | Mid Cap vs. Growth Opportunities Fund | Mid Cap vs. Total Return Fund | Mid Cap vs. William Blair International |
| Loomis Sayles vs. Qs Growth Fund | Loomis Sayles vs. Small Pany Growth | Loomis Sayles vs. Mid Cap Growth | Loomis Sayles vs. Pace Smallmedium Growth |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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