Correlation Between Huber Capital and Loomis Sayles

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

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

Diversification Opportunities for Huber Capital and Loomis Sayles

0.51

Correlation Coefficient

Huber Capital  Loomis Sayles

Very weak diversification

The 3 months correlation between Huber and Loomis is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Diversified and Loomis Sayles International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Intern and Huber Capital 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 Huber Capital Diversified 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 Intern has no effect on the direction of Huber Capital i.e., Huber Capital and Loomis Sayles go up and down completely randomly.

Pair Corralation between Huber Capital and Loomis Sayles

Assuming the 90 days horizon Huber Capital Diversified is expected to under-perform the Loomis Sayles. But the mutual fund apears to be less risky and, when comparing its historical volatility, Huber Capital Diversified is 1.32 times less risky than Loomis Sayles. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Loomis Sayles International is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  1,068  in Loomis Sayles International on December 29, 2024 and sell it today you would lose (9.00) from holding Loomis Sayles International or give up 0.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Huber Capital Diversified  vs.  Loomis Sayles International

Huber Capital Diversified

Risk-Adjusted Performance

Very Weak

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

Loomis Sayles Intern

Risk-Adjusted Performance

Very Weak

Over the last 90 days Loomis Sayles International 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 Huber Capital and Loomis Sayles

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

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.