Correlation Between Thornburg International and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Thornburg International 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 Thornburg International and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg International Value and Loomis Sayles Strategic, you can compare the effects of market volatilities on Thornburg International 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 Thornburg International with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg International and Loomis Sayles.
Diversification Opportunities for Thornburg International and Loomis Sayles
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thornburg and Loomis is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg International Value and Loomis Sayles Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Strategic and Thornburg International 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 Thornburg International Value 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 Strategic has no effect on the direction of Thornburg International i.e., Thornburg International and Loomis Sayles go up and down completely randomly.
Pair Corralation between Thornburg International and Loomis Sayles
Assuming the 90 days horizon Thornburg International Value is expected to under-perform the Loomis Sayles. In addition to that, Thornburg International is 3.46 times more volatile than Loomis Sayles Strategic. It trades about -0.03 of its total potential returns per unit of risk. Loomis Sayles Strategic is currently generating about 0.21 per unit of volatility. If you would invest 1,150 in Loomis Sayles Strategic on September 1, 2024 and sell it today you would earn a total of 83.00 from holding Loomis Sayles Strategic or generate 7.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thornburg International Value vs. Loomis Sayles Strategic
Performance |
| Timeline |
| Thornburg International |
| Loomis Sayles Strategic |
Thornburg International and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg International and Loomis Sayles
The main advantage of trading using opposite Thornburg International and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg International 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.| Thornburg International vs. Growth Fund Of | Thornburg International vs. Loomis Sayles Strategic | Thornburg International vs. Oppenheimer International Bond | Thornburg International vs. Thornburg E Growth |
| Loomis Sayles vs. Asg Managed Futures | Loomis Sayles vs. Asg Managed Futures | Loomis Sayles vs. Natixis Oakmark | Loomis Sayles vs. Natixis Oakmark International |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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