Correlation Between Loomis Sayles and Riskproreg

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

By analyzing existing cross correlation between Loomis Sayles Inflation and Riskproreg 30 Fund, you can compare the effects of market volatilities on Loomis Sayles and Riskproreg 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 Riskproreg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Riskproreg.

Diversification Opportunities for Loomis Sayles and Riskproreg

0.17

Correlation Coefficient

Loomis Sayles  Riskproreg

Average diversification

The 3 months correlation between Loomis and Riskproreg is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Riskproreg 30 Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riskproreg 30 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 Inflation are associated (or correlated) with Riskproreg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riskproreg 30 has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Riskproreg go up and down completely randomly.

Pair Corralation between Loomis Sayles and Riskproreg

Assuming the 90 days horizon Loomis Sayles is expected to generate 7.85 times less return on investment than Riskproreg. But when comparing it to its historical volatility, Loomis Sayles Inflation is 2.11 times less risky than Riskproreg. It trades about 0.02 of its potential returns per unit of risk. Riskproreg 30 Fund is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,095  in Riskproreg 30 Fund on October 4, 2024 and sell it today you would earn a total of  310.00  from holding Riskproreg 30 Fund or generate 28.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Loomis Sayles Inflation  vs.  Riskproreg 30 Fund

Loomis Sayles Inflation

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Loomis Sayles Inflation 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 latest stock price disturbance, may contribute to short-term losses for the investors.

Riskproreg 30

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Riskproreg 30 Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Riskproreg is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Loomis Sayles and Riskproreg

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

The idea behind Loomis Sayles Inflation and Riskproreg 30 Fund 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.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.