Correlation Between Loomis Sayles and Blackrock Resources

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

By analyzing existing cross correlation between Loomis Sayles International and Blackrock Resources Commodities, you can compare the effects of market volatilities on Loomis Sayles and Blackrock Resources 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 Blackrock Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Blackrock Resources.

Diversification Opportunities for Loomis Sayles and Blackrock Resources

0.25

Correlation Coefficient

Loomis Sayles  Blackrock Resources

Modest diversification

The 3 months correlation between Loomis and Blackrock is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles International and Blackrock Resources Commoditie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Resources 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 International are associated (or correlated) with Blackrock Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Resources has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Blackrock Resources go up and down completely randomly.

Pair Corralation between Loomis Sayles and Blackrock Resources

Assuming the 90 days horizon Loomis Sayles International is expected to under-perform the Blackrock Resources. In addition to that, Loomis Sayles is 1.32 times more volatile than Blackrock Resources Commodities. It trades about 0.0 of its total potential returns per unit of risk. Blackrock Resources Commodities is currently generating about 0.2 per unit of volatility. If you would invest  831.00  in Blackrock Resources Commodities on December 29, 2024 and sell it today you would earn a total of  103.00  from holding Blackrock Resources Commodities or generate 12.39% return on investment over 90 days.

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

Loomis Sayles International  vs.  Blackrock Resources Commoditie

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.

Blackrock Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Resources Commodities are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Blackrock Resources may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Loomis Sayles and Blackrock Resources

The main advantage of trading using opposite Loomis Sayles and Blackrock Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Blackrock Resources 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 Blackrock Resources will offset losses from the drop in Blackrock Resources' long position.

The idea behind Loomis Sayles International and Blackrock Resources Commodities 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.