Correlation Between Loomis Sayles and Wilmington Trust
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Wilmington Trust 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 Wilmington Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Limited and Wilmington Trust Retirement, you can compare the effects of market volatilities on Loomis Sayles and Wilmington Trust 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 Wilmington Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Wilmington Trust.
Diversification Opportunities for Loomis Sayles and Wilmington Trust
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Loomis and Wilmington is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Limited and Wilmington Trust Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington Trust Ret 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 Limited are associated (or correlated) with Wilmington Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington Trust Ret has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Wilmington Trust go up and down completely randomly.
Pair Corralation between Loomis Sayles and Wilmington Trust
Assuming the 90 days horizon Loomis Sayles Limited is expected to under-perform the Wilmington Trust. But the mutual fund apears to be less risky and, when comparing its historical volatility, Loomis Sayles Limited is 8.12 times less risky than Wilmington Trust. The mutual fund trades about -0.13 of its potential returns per unit of risk. The Wilmington Trust Retirement is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 32,248 in Wilmington Trust Retirement on September 24, 2024 and sell it today you would earn a total of 168.00 from holding Wilmington Trust Retirement or generate 0.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Loomis Sayles Limited vs. Wilmington Trust Retirement
Performance |
Timeline |
Loomis Sayles Limited |
Wilmington Trust Ret |
Loomis Sayles and Wilmington Trust Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loomis Sayles and Wilmington Trust
The main advantage of trading using opposite Loomis Sayles and Wilmington Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Wilmington Trust 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 Wilmington Trust will offset losses from the drop in Wilmington Trust's long position.Loomis Sayles vs. Jpmorgan Smartretirement 2035 | Loomis Sayles vs. Wilmington Trust Retirement | Loomis Sayles vs. Calvert Moderate Allocation | Loomis Sayles vs. Strategic Allocation Moderate |
Wilmington Trust vs. Vanguard Total Stock | Wilmington Trust vs. Vanguard 500 Index | Wilmington Trust vs. Vanguard Total Stock | Wilmington Trust vs. Vanguard Total Stock |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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