Correlation Between Investec Emerging and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Investec Emerging 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 Investec Emerging and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investec Emerging Markets and Loomis Sayles E, you can compare the effects of market volatilities on Investec Emerging 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 Investec Emerging with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Emerging and Loomis Sayles.
Diversification Opportunities for Investec Emerging and Loomis Sayles
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Investec and Loomis is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Investec Emerging Markets and Loomis Sayles E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles E and Investec Emerging 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 Investec Emerging Markets 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 E has no effect on the direction of Investec Emerging i.e., Investec Emerging and Loomis Sayles go up and down completely randomly.
Pair Corralation between Investec Emerging and Loomis Sayles
Assuming the 90 days horizon Investec Emerging Markets is expected to generate 3.0 times more return on investment than Loomis Sayles. However, Investec Emerging is 3.0 times more volatile than Loomis Sayles E. It trades about 0.06 of its potential returns per unit of risk. Loomis Sayles E is currently generating about -0.01 per unit of risk. If you would invest 1,025 in Investec Emerging Markets on December 4, 2024 and sell it today you would earn a total of 63.00 from holding Investec Emerging Markets or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Emerging Markets vs. Loomis Sayles E
Performance |
| Timeline |
| Investec Emerging Markets |
| Loomis Sayles E |
Investec Emerging and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Emerging and Loomis Sayles
The main advantage of trading using opposite Investec Emerging and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Emerging 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.| Investec Emerging vs. Pimco Emerging Markets | Investec Emerging vs. Hartford Schroders Emerging | Investec Emerging vs. The Hartford Emerging | Investec Emerging vs. Rbc Emerging Markets |
| Loomis Sayles vs. The Hartford International | Loomis Sayles vs. Profunds Large Cap Growth | Loomis Sayles vs. L Mason Qs | Loomis Sayles vs. Touchstone Sands Capital |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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