Correlation Between Loomis Sayles and New York

Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and New York 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 New York 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 New York Bond, you can compare the effects of market volatilities on Loomis Sayles and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and New York.

Diversification Opportunities for Loomis Sayles and New York

-0.23

Correlation Coefficient

Loomis Sayles  New York

Very good diversification

The 3 months correlation between Loomis and New is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and New York Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Bond has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and New York go up and down completely randomly.

Pair Corralation between Loomis Sayles and New York

Assuming the 90 days horizon Loomis Sayles is expected to generate 1.34 times less return on investment than New York. But when comparing it to its historical volatility, Loomis Sayles Inflation is 1.02 times less risky than New York. It trades about 0.32 of its potential returns per unit of risk. New York Bond is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest  969.00  in New York Bond on December 11, 2024 and sell it today you would earn a total of  18.00  from holding New York Bond or generate 1.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	40.0%
Values	Daily Returns

Loomis Sayles Inflation  vs.  New York Bond

Loomis Sayles Inflation

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Loomis Sayles Inflation are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. 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.

New York Bond

Risk-Adjusted Performance

Very Weak

Over the last 90 days New York Bond has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, New York 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 New York

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

The idea behind Loomis Sayles Inflation and New York Bond 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.