Correlation Between Ivy High and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Ivy High 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 Ivy High and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivy High Income and Loomis Sayles Bond, you can compare the effects of market volatilities on Ivy High 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 Ivy High with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivy High and Loomis Sayles.
Diversification Opportunities for Ivy High and Loomis Sayles
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ivy and Loomis is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ivy High Income and Loomis Sayles Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Bond and Ivy High 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 Ivy High 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 Bond has no effect on the direction of Ivy High i.e., Ivy High and Loomis Sayles go up and down completely randomly.
Pair Corralation between Ivy High and Loomis Sayles
Assuming the 90 days horizon Ivy High is expected to generate 1.5 times less return on investment than Loomis Sayles. In addition to that, Ivy High is 1.13 times more volatile than Loomis Sayles Bond. It trades about 0.11 of its total potential returns per unit of risk. Loomis Sayles Bond is currently generating about 0.18 per unit of volatility. If you would invest 1,107 in Loomis Sayles Bond on August 26, 2024 and sell it today you would earn a total of 69.00 from holding Loomis Sayles Bond or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ivy High Income vs. Loomis Sayles Bond
Performance |
| Timeline |
| Ivy High Income |
| Loomis Sayles Bond |
Ivy High and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ivy High and Loomis Sayles
The main advantage of trading using opposite Ivy High and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivy High 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.| Ivy High vs. Ivy Large Cap | Ivy High vs. Ivy Small Cap | Ivy High vs. Ivy Apollo Multi Asset | Ivy High vs. Ivy Apollo Multi Asset |
| Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Inflation | Loomis Sayles vs. Loomis Sayles Bond | Loomis Sayles vs. Loomis Sayles 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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