Correlation Between Virtus Convertible and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Virtus Convertible 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 Virtus Convertible and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Convertible and Loomis Sayles Smallmid, you can compare the effects of market volatilities on Virtus Convertible 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 Virtus Convertible with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Convertible and Loomis Sayles.
Diversification Opportunities for Virtus Convertible and Loomis Sayles
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Virtus and Loomis is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Convertible and Loomis Sayles Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Smallmid and Virtus Convertible 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 Virtus Convertible 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 Smallmid has no effect on the direction of Virtus Convertible i.e., Virtus Convertible and Loomis Sayles go up and down completely randomly.
Pair Corralation between Virtus Convertible and Loomis Sayles
Assuming the 90 days horizon Virtus Convertible is expected to generate 0.56 times more return on investment than Loomis Sayles. However, Virtus Convertible is 1.79 times less risky than Loomis Sayles. It trades about 0.2 of its potential returns per unit of risk. Loomis Sayles Smallmid is currently generating about 0.11 per unit of risk. If you would invest 3,204 in Virtus Convertible on September 1, 2024 and sell it today you would earn a total of 532.00 from holding Virtus Convertible or generate 16.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Convertible vs. Loomis Sayles Smallmid
Performance |
| Timeline |
| Virtus Convertible |
| Loomis Sayles Smallmid |
Virtus Convertible and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Convertible and Loomis Sayles
The main advantage of trading using opposite Virtus Convertible and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Convertible 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.| Virtus Convertible vs. Metropolitan West High | Virtus Convertible vs. Pace High Yield | Virtus Convertible vs. Valic Company I | Virtus Convertible vs. Alpine High Yield |
| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles Small |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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