Correlation Between Asg Managed and Loomis Sayles

Can any of the company-specific risk be diversified away by investing in both Asg Managed 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 Asg Managed and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Asg Managed Futures and Loomis Sayles E, you can compare the effects of market volatilities on Asg Managed 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 Asg Managed with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Managed and Loomis Sayles.

Diversification Opportunities for Asg Managed and Loomis Sayles

-0.58

Correlation Coefficient

Asg Managed  Loomis Sayles

Excellent diversification

The 3 months correlation between Asg and Loomis is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Asg Managed Futures 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 Asg Managed 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 Asg Managed Futures 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 Asg Managed i.e., Asg Managed and Loomis Sayles go up and down completely randomly.

Pair Corralation between Asg Managed and Loomis Sayles

Assuming the 90 days horizon Asg Managed Futures is expected to under-perform the Loomis Sayles. In addition to that, Asg Managed is 2.33 times more volatile than Loomis Sayles E. It trades about -0.03 of its total potential returns per unit of risk. Loomis Sayles E is currently generating about 0.01 per unit of volatility. If you would invest  1,141  in Loomis Sayles E on November 29, 2024 and sell it today you would earn a total of  2.00  from holding Loomis Sayles E or generate 0.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Asg Managed Futures  vs.  Loomis Sayles E

Asg Managed Futures

Risk-Adjusted Performance

Very Weak

Over the last 90 days Asg Managed Futures has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Asg Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Loomis Sayles E

Risk-Adjusted Performance

Weak

Over the last 90 days Loomis Sayles E has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Loomis Sayles is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Asg Managed and Loomis Sayles

The main advantage of trading using opposite Asg Managed and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Managed 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.

The idea behind Asg Managed Futures and Loomis Sayles E pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.