Correlation Between Thornburg Core and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Thornburg Core 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 Core 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 E Growth and Loomis Sayles Strategic, you can compare the effects of market volatilities on Thornburg Core 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 Core with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg Core and Loomis Sayles.
Diversification Opportunities for Thornburg Core and Loomis Sayles
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thornburg and Loomis is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg E Growth 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 Core 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 E 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 Strategic has no effect on the direction of Thornburg Core i.e., Thornburg Core and Loomis Sayles go up and down completely randomly.
Pair Corralation between Thornburg Core and Loomis Sayles
Assuming the 90 days horizon Thornburg E Growth is expected to generate 8.4 times more return on investment than Loomis Sayles. However, Thornburg Core is 8.4 times more volatile than Loomis Sayles Strategic. It trades about 0.18 of its potential returns per unit of risk. Loomis Sayles Strategic is currently generating about 0.02 per unit of risk. If you would invest 3,051 in Thornburg E Growth on August 25, 2024 and sell it today you would earn a total of 196.00 from holding Thornburg E Growth or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thornburg E Growth vs. Loomis Sayles Strategic
Performance |
| Timeline |
| Thornburg E Growth |
| Loomis Sayles Strategic |
Thornburg Core and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg Core and Loomis Sayles
The main advantage of trading using opposite Thornburg Core and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Core 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 Core vs. Thornburg Value Fund | Thornburg Core vs. Thornburg Value Fund | Thornburg Core vs. Thornburg International Value | Thornburg Core vs. Thornburg International Value |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |