Correlation Between Westcore Plus and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Westcore Plus 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 Westcore Plus and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westcore Plus Bond and Loomis Sayles Global, you can compare the effects of market volatilities on Westcore Plus 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 Westcore Plus with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westcore Plus and Loomis Sayles.
Diversification Opportunities for Westcore Plus and Loomis Sayles
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Westcore and Loomis is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Westcore Plus Bond 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 Westcore Plus 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 Westcore Plus Bond 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 Westcore Plus i.e., Westcore Plus and Loomis Sayles go up and down completely randomly.
Pair Corralation between Westcore Plus and Loomis Sayles
Assuming the 90 days horizon Westcore Plus is expected to generate 1.44 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Westcore Plus Bond is 1.04 times less risky than Loomis Sayles. It trades about 0.06 of its potential returns per unit of risk. Loomis Sayles Global is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,461 in Loomis Sayles Global on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Loomis Sayles Global or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westcore Plus Bond vs. Loomis Sayles Global
Performance |
| Timeline |
| Westcore Plus Bond |
| Loomis Sayles Global |
Westcore Plus and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westcore Plus and Loomis Sayles
The main advantage of trading using opposite Westcore Plus and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westcore Plus 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.| Westcore Plus vs. Large Cap Fund | Westcore Plus vs. James Balanced Golden | Westcore Plus vs. Aberdeen Global High | Westcore Plus vs. Loomis Sayles Bond |
| Loomis Sayles vs. Extended Market Index | Loomis Sayles vs. Transamerica Emerging Markets | Loomis Sayles vs. Artisan Emerging Markets | Loomis Sayles vs. Kinetics Market Opportunities |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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