Correlation Between Eagle Mid and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Eagle Mid 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 Eagle Mid and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Mid Cap and Loomis Sayles Small, you can compare the effects of market volatilities on Eagle Mid 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 Eagle Mid with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mid and Loomis Sayles.
Diversification Opportunities for Eagle Mid and Loomis Sayles
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eagle and Loomis is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mid Cap and Loomis Sayles Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Small and Eagle Mid 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 Eagle Mid 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 Small has no effect on the direction of Eagle Mid i.e., Eagle Mid and Loomis Sayles go up and down completely randomly.
Pair Corralation between Eagle Mid and Loomis Sayles
Assuming the 90 days horizon Eagle Mid is expected to generate 1.08 times less return on investment than Loomis Sayles. In addition to that, Eagle Mid is 1.02 times more volatile than Loomis Sayles Small. It trades about 0.04 of its total potential returns per unit of risk. Loomis Sayles Small is currently generating about 0.05 per unit of volatility. If you would invest 2,419 in Loomis Sayles Small on September 24, 2024 and sell it today you would earn a total of 669.00 from holding Loomis Sayles Small or generate 27.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Eagle Mid Cap vs. Loomis Sayles Small
Performance |
Timeline |
Eagle Mid Cap |
Loomis Sayles Small |
Eagle Mid and Loomis Sayles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eagle Mid and Loomis Sayles
The main advantage of trading using opposite Eagle Mid and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mid 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.Eagle Mid vs. Mfs Mid Cap | Eagle Mid vs. Janus Triton Fund | Eagle Mid vs. Europacific Growth Fund | Eagle Mid vs. Mfs International Value |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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