Correlation Between Loomis Sayles and Inverse High
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Inverse High 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 Inverse High 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 Inverse High Yield, you can compare the effects of market volatilities on Loomis Sayles and Inverse High 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 Inverse High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Inverse High.
Diversification Opportunities for Loomis Sayles and Inverse High
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Loomis and Inverse is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Inverse High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inverse High Yield 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 Inverse High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inverse High Yield has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Inverse High go up and down completely randomly.
Pair Corralation between Loomis Sayles and Inverse High
Assuming the 90 days horizon Loomis Sayles Inflation is expected to under-perform the Inverse High. But the mutual fund apears to be less risky and, when comparing its historical volatility, Loomis Sayles Inflation is 1.48 times less risky than Inverse High. The mutual fund trades about -0.44 of its potential returns per unit of risk. The Inverse High Yield is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,921 in Inverse High Yield on September 26, 2024 and sell it today you would earn a total of 73.00 from holding Inverse High Yield or generate 1.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Loomis Sayles Inflation vs. Inverse High Yield
Performance |
Timeline |
Loomis Sayles Inflation |
Inverse High Yield |
Loomis Sayles and Inverse High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loomis Sayles and Inverse High
The main advantage of trading using opposite Loomis Sayles and Inverse High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Inverse High 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 Inverse High will offset losses from the drop in Inverse High's long position.Loomis Sayles vs. Oppenheimer Gold Special | Loomis Sayles vs. Fidelity Advisor Gold | Loomis Sayles vs. Gold And Precious | Loomis Sayles vs. International Investors Gold |
Inverse High vs. Basic Materials Fund | Inverse High vs. Basic Materials Fund | Inverse High vs. Banking Fund Class | Inverse High vs. Basic Materials Fund |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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