Correlation Between Investec Global and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Investec Global 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 Global 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 Global Franchise and Loomis Sayles Inflation, you can compare the effects of market volatilities on Investec Global 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 Global with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Global and Loomis Sayles.
Diversification Opportunities for Investec Global and Loomis Sayles
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Investec and Loomis is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Investec Global Franchise 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 Investec Global 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 Global Franchise 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 Investec Global i.e., Investec Global and Loomis Sayles go up and down completely randomly.
Pair Corralation between Investec Global and Loomis Sayles
Assuming the 90 days horizon Investec Global Franchise is expected to generate 2.34 times more return on investment than Loomis Sayles. However, Investec Global is 2.34 times more volatile than Loomis Sayles Inflation. It trades about 0.25 of its potential returns per unit of risk. Loomis Sayles Inflation is currently generating about 0.2 per unit of risk. If you would invest 1,770 in Investec Global Franchise on September 13, 2024 and sell it today you would earn a total of 49.00 from holding Investec Global Franchise or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Global Franchise vs. Loomis Sayles Inflation
Performance |
| Timeline |
| Investec Global Franchise |
| Loomis Sayles Inflation |
Investec Global and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Global and Loomis Sayles
The main advantage of trading using opposite Investec Global and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Global 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 Global vs. Investec Emerging Markets | Investec Global vs. Investec Global Franchise | Investec Global vs. Ninety One International | Investec Global vs. Vanguard 500 Index |
| Loomis Sayles vs. Mirova Global Green | Loomis Sayles vs. Jhancock Global Equity | Loomis Sayles vs. Alliancebernstein Global High | Loomis Sayles vs. Artisan Global Unconstrained |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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