Correlation Between Bondbloxx ETF and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Bondbloxx ETF 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 Bondbloxx ETF and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bondbloxx ETF Trust and Loomis Sayles Limited, you can compare the effects of market volatilities on Bondbloxx ETF 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 Bondbloxx ETF with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bondbloxx ETF and Loomis Sayles.
Diversification Opportunities for Bondbloxx ETF and Loomis Sayles
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bondbloxx and Loomis is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and Loomis Sayles Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Limited and Bondbloxx ETF 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 Bondbloxx ETF Trust 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 Limited has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and Loomis Sayles go up and down completely randomly.
Pair Corralation between Bondbloxx ETF and Loomis Sayles
Given the investment horizon of 90 days Bondbloxx ETF is expected to generate 1.01 times less return on investment than Loomis Sayles. But when comparing it to its historical volatility, Bondbloxx ETF Trust is 1.17 times less risky than Loomis Sayles. It trades about 0.15 of its potential returns per unit of risk. Loomis Sayles Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,009 in Loomis Sayles Limited on September 12, 2024 and sell it today you would earn a total of 70.00 from holding Loomis Sayles Limited or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.7% |
| Values | Daily Returns |
Bondbloxx ETF Trust vs. Loomis Sayles Limited
Performance |
| Timeline |
| Bondbloxx ETF Trust |
| Loomis Sayles Limited |
Bondbloxx ETF and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bondbloxx ETF and Loomis Sayles
The main advantage of trading using opposite Bondbloxx ETF and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bondbloxx ETF 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.| Bondbloxx ETF vs. Bondbloxx ETF Trust | Bondbloxx ETF vs. Bondbloxx ETF Trust | Bondbloxx ETF vs. Bondbloxx ETF Trust | Bondbloxx ETF vs. Bondbloxx ETF Trust |
| Loomis Sayles vs. SCOR PK | Loomis Sayles vs. Morningstar Unconstrained Allocation | Loomis Sayles vs. Via Renewables | Loomis Sayles vs. Bondbloxx ETF Trust |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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