Correlation Between Thrivent Natural and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Thrivent Natural 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 Thrivent Natural and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent Natural Resources and Loomis Sayles High, you can compare the effects of market volatilities on Thrivent Natural 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 Thrivent Natural with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and Loomis Sayles.
Diversification Opportunities for Thrivent Natural and Loomis Sayles
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thrivent and Loomis is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Loomis Sayles High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles High and Thrivent Natural 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 Thrivent Natural Resources 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 High has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Loomis Sayles go up and down completely randomly.
Pair Corralation between Thrivent Natural and Loomis Sayles
Assuming the 90 days horizon Thrivent Natural is expected to generate 3.21 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Thrivent Natural Resources is 2.82 times less risky than Loomis Sayles. It trades about 0.15 of its potential returns per unit of risk. Loomis Sayles High is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 896.00 in Loomis Sayles High on September 13, 2024 and sell it today you would earn a total of 6.00 from holding Loomis Sayles High or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Thrivent Natural Resources vs. Loomis Sayles High
Performance |
| Timeline |
| Thrivent Natural Res |
| Loomis Sayles High |
Thrivent Natural and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Natural and Loomis Sayles
The main advantage of trading using opposite Thrivent Natural and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Natural 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.| Thrivent Natural vs. Ep Emerging Markets | Thrivent Natural vs. Pnc Emerging Markets | Thrivent Natural vs. Dws Emerging Markets | Thrivent Natural vs. Origin Emerging Markets |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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