Correlation Between Loomis Sayles and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Ambrus Core 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 Ambrus Core 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 Ambrus Core Bond, you can compare the effects of market volatilities on Loomis Sayles and Ambrus Core 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 Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Ambrus Core.
Diversification Opportunities for Loomis Sayles and Ambrus Core
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loomis and Ambrus is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Ambrus Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrus Core Bond 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 Ambrus Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrus Core Bond has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Ambrus Core go up and down completely randomly.
Pair Corralation between Loomis Sayles and Ambrus Core
Assuming the 90 days horizon Loomis Sayles Inflation is expected to generate 1.4 times more return on investment than Ambrus Core. However, Loomis Sayles is 1.4 times more volatile than Ambrus Core Bond. It trades about 0.1 of its potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.08 per unit of risk. If you would invest 965.00 in Loomis Sayles Inflation on December 4, 2024 and sell it today you would earn a total of 15.00 from holding Loomis Sayles Inflation or generate 1.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Loomis Sayles Inflation vs. Ambrus Core Bond
Performance |
Timeline |
Loomis Sayles Inflation |
Ambrus Core Bond |
Loomis Sayles and Ambrus Core Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loomis Sayles and Ambrus Core
The main advantage of trading using opposite Loomis Sayles and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Ambrus Core 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 Ambrus Core will offset losses from the drop in Ambrus Core's long position.Loomis Sayles vs. Global Diversified Income | Loomis Sayles vs. Voya Solution Conservative | Loomis Sayles vs. Calvert Conservative Allocation | Loomis Sayles vs. Aqr Diversified Arbitrage |
Ambrus Core vs. Federated Hermes Conservative | Ambrus Core vs. Voya Solution Conservative | Ambrus Core vs. Calvert Conservative Allocation | Ambrus Core vs. Putnam Diversified Income |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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