Correlation Between Thornburg Investment and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Thornburg Investment 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 Investment 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 Investment Income and Loomis Sayles Global, you can compare the effects of market volatilities on Thornburg Investment 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 Investment with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg Investment and Loomis Sayles.
Diversification Opportunities for Thornburg Investment and Loomis Sayles
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between THORNBURG and Loomis is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Investment Income 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 Thornburg Investment 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 Investment Income 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 Thornburg Investment i.e., Thornburg Investment and Loomis Sayles go up and down completely randomly.
Pair Corralation between Thornburg Investment and Loomis Sayles
Assuming the 90 days horizon Thornburg Investment Income is expected to generate 0.7 times more return on investment than Loomis Sayles. However, Thornburg Investment Income is 1.43 times less risky than Loomis Sayles. It trades about 0.09 of its potential returns per unit of risk. Loomis Sayles Global is currently generating about 0.05 per unit of risk. If you would invest 1,985 in Thornburg Investment Income on September 3, 2024 and sell it today you would earn a total of 606.00 from holding Thornburg Investment Income or generate 30.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thornburg Investment Income vs. Loomis Sayles Global
Performance |
| Timeline |
| Thornburg Investment |
| Loomis Sayles Global |
Thornburg Investment and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg Investment and Loomis Sayles
The main advantage of trading using opposite Thornburg Investment and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Investment 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 Investment vs. Franklin Income Fund | Thornburg Investment vs. First Eagle Global | Thornburg Investment vs. Blackrock Incm Ptf | Thornburg Investment vs. Oppenheimer International Bond |
| Loomis Sayles vs. Blackrock Gbl Alloc | Loomis Sayles vs. Ivy Asset Strategy | Loomis Sayles vs. Fpa Crescent Fund | Loomis Sayles vs. Templeton Global 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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