Correlation Between Vanguard Strategic and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Vanguard Strategic 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 Vanguard Strategic and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Strategic Small Cap and Loomis Sayles Smallmid, you can compare the effects of market volatilities on Vanguard Strategic 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 Vanguard Strategic with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Strategic and Loomis Sayles.
Diversification Opportunities for Vanguard Strategic and Loomis Sayles
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Vanguard and Loomis is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Strategic Small Cap 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 Vanguard Strategic 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 Vanguard Strategic Small Cap 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 Vanguard Strategic i.e., Vanguard Strategic and Loomis Sayles go up and down completely randomly.
Pair Corralation between Vanguard Strategic and Loomis Sayles
Assuming the 90 days horizon Vanguard Strategic Small Cap is expected to generate 1.23 times more return on investment than Loomis Sayles. However, Vanguard Strategic is 1.23 times more volatile than Loomis Sayles Smallmid. It trades about 0.11 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 3,934 in Vanguard Strategic Small Cap on September 1, 2024 and sell it today you would earn a total of 752.00 from holding Vanguard Strategic Small Cap or generate 19.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Vanguard Strategic Small Cap vs. Loomis Sayles Smallmid
Performance |
| Timeline |
| Vanguard Strategic |
| Loomis Sayles Smallmid |
Vanguard Strategic and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Strategic and Loomis Sayles
The main advantage of trading using opposite Vanguard Strategic and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Strategic 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.| Vanguard Strategic vs. Vanguard Explorer Value | Vanguard Strategic vs. Vanguard Strategic Equity | Vanguard Strategic vs. Vanguard Diversified Equity | Vanguard Strategic vs. Vanguard Mid Cap |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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