Correlation Between Fidelity Small and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Fidelity Small 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 Fidelity Small and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Small Cap and Loomis Sayles Limited, you can compare the effects of market volatilities on Fidelity Small 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 Fidelity Small with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Small and Loomis Sayles.
Diversification Opportunities for Fidelity Small and Loomis Sayles
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fidelity and Loomis is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Small Cap 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 Fidelity Small 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 Fidelity Small Cap 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 Fidelity Small i.e., Fidelity Small and Loomis Sayles go up and down completely randomly.
Pair Corralation between Fidelity Small and Loomis Sayles
Assuming the 90 days horizon Fidelity Small Cap is expected to under-perform the Loomis Sayles. In addition to that, Fidelity Small is 13.41 times more volatile than Loomis Sayles Limited. It trades about -0.02 of its total potential returns per unit of risk. Loomis Sayles Limited is currently generating about -0.04 per unit of volatility. If you would invest 1,079 in Loomis Sayles Limited on October 6, 2024 and sell it today you would lose (2.00) from holding Loomis Sayles Limited or give up 0.19% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Fidelity Small Cap vs. Loomis Sayles Limited
Performance |
Timeline |
Fidelity Small Cap |
Loomis Sayles Limited |
Fidelity Small and Loomis Sayles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidelity Small and Loomis Sayles
The main advantage of trading using opposite Fidelity Small and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Small 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.Fidelity Small vs. Fidelity Large Cap | Fidelity Small vs. Fidelity Small Cap | Fidelity Small vs. Fidelity Mid Cap | Fidelity Small vs. Fidelity Mid Cap |
Loomis Sayles vs. Rbc Short Duration | Loomis Sayles vs. Calvert Short Duration | Loomis Sayles vs. Siit Ultra Short | Loomis Sayles vs. Transamerica Short Term Bond |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
CEOs Directory Screen CEOs from public companies around the world |