Correlation Between Loomis Sayles and Jpmorgan Diversified
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Jpmorgan Diversified 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 Loomis Sayles and Jpmorgan Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Small and Jpmorgan Diversified Fund, you can compare the effects of market volatilities on Loomis Sayles and Jpmorgan Diversified 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 Loomis Sayles with a short position of Jpmorgan Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Jpmorgan Diversified.
Diversification Opportunities for Loomis Sayles and Jpmorgan Diversified
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loomis and Jpmorgan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Small and Jpmorgan Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Diversified and Loomis Sayles 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 Loomis Sayles Small are associated (or correlated) with Jpmorgan Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Diversified has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Jpmorgan Diversified go up and down completely randomly.
Pair Corralation between Loomis Sayles and Jpmorgan Diversified
Assuming the 90 days horizon Loomis Sayles Small is expected to under-perform the Jpmorgan Diversified. In addition to that, Loomis Sayles is 1.55 times more volatile than Jpmorgan Diversified Fund. It trades about -0.33 of its total potential returns per unit of risk. Jpmorgan Diversified Fund is currently generating about -0.26 per unit of volatility. If you would invest 1,632 in Jpmorgan Diversified Fund on September 24, 2024 and sell it today you would lose (60.00) from holding Jpmorgan Diversified Fund or give up 3.68% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Loomis Sayles Small vs. Jpmorgan Diversified Fund
Performance |
Timeline |
Loomis Sayles Small |
Jpmorgan Diversified |
Loomis Sayles and Jpmorgan Diversified Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loomis Sayles and Jpmorgan Diversified
The main advantage of trading using opposite Loomis Sayles and Jpmorgan Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Jpmorgan Diversified 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 Jpmorgan Diversified will offset losses from the drop in Jpmorgan Diversified's long position.Loomis Sayles vs. Jpmorgan Diversified Fund | Loomis Sayles vs. Western Asset Diversified | Loomis Sayles vs. Tax Free Conservative Income | Loomis Sayles vs. Aqr Diversified Arbitrage |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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