Correlation Between Barings Global and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Barings 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 Barings 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 Barings Global Floating and Loomis Sayles Inflation, you can compare the effects of market volatilities on Barings 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 Barings Global with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Loomis Sayles.
Diversification Opportunities for Barings Global and Loomis Sayles
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barings and Loomis is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating 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 Barings 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 Barings Global Floating 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 Barings Global i.e., Barings Global and Loomis Sayles go up and down completely randomly.
Pair Corralation between Barings Global and Loomis Sayles
Assuming the 90 days horizon Barings Global Floating is expected to generate 0.4 times more return on investment than Loomis Sayles. However, Barings Global Floating is 2.52 times less risky than Loomis Sayles. It trades about 0.23 of its potential returns per unit of risk. Loomis Sayles Inflation is currently generating about -0.02 per unit of risk. If you would invest 864.00 in Barings Global Floating on September 6, 2024 and sell it today you would earn a total of 14.00 from holding Barings Global Floating or generate 1.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Barings Global Floating vs. Loomis Sayles Inflation
Performance |
Timeline |
Barings Global Floating |
Loomis Sayles Inflation |
Barings Global and Loomis Sayles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barings Global and Loomis Sayles
The main advantage of trading using opposite Barings Global and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings 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.Barings Global vs. T Rowe Price | Barings Global vs. T Rowe Price | Barings Global vs. T Rowe Price | Barings Global vs. T Rowe Price |
Loomis Sayles vs. Qs Large Cap | Loomis Sayles vs. Jhancock Disciplined Value | Loomis Sayles vs. Dunham Large Cap | Loomis Sayles vs. M Large Cap |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |