Correlation Between Gamco Natural and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Gamco 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 Gamco 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 Gamco Natural Resources and Loomis Sayles Inflation, you can compare the effects of market volatilities on Gamco 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 Gamco Natural with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Natural and Loomis Sayles.
Diversification Opportunities for Gamco Natural and Loomis Sayles
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gamco and Loomis is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Natural Resources and Loomis Sayles Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Inflation and Gamco 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 Gamco 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 Inflation has no effect on the direction of Gamco Natural i.e., Gamco Natural and Loomis Sayles go up and down completely randomly.
Pair Corralation between Gamco Natural and Loomis Sayles
Assuming the 90 days horizon Gamco Natural Resources is expected to under-perform the Loomis Sayles. In addition to that, Gamco Natural is 2.78 times more volatile than Loomis Sayles Inflation. It trades about -0.11 of its total potential returns per unit of risk. Loomis Sayles Inflation is currently generating about 0.08 per unit of volatility. If you would invest 962.00 in Loomis Sayles Inflation on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Loomis Sayles Inflation or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gamco Natural Resources vs. Loomis Sayles Inflation
Performance |
| Timeline |
| Gamco Natural Resources |
| Loomis Sayles Inflation |
Gamco Natural and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Natural and Loomis Sayles
The main advantage of trading using opposite Gamco Natural and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco 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.| Gamco Natural vs. Vanguard Total Stock | Gamco Natural vs. Vanguard 500 Index | Gamco Natural vs. Vanguard Total Stock | Gamco Natural vs. Vanguard Total Stock |
| 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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