Correlation Between Loomis Sayles and Crawford Dividend

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

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

Diversification Opportunities for Loomis Sayles and Crawford Dividend

0.99

Correlation Coefficient

Loomis Sayles  Crawford Dividend

No risk reduction

The 3 months correlation between Loomis and Crawford is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Small and Crawford Dividend Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford Dividend 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 Small are associated (or correlated) with Crawford Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crawford Dividend has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Crawford Dividend go up and down completely randomly.

Pair Corralation between Loomis Sayles and Crawford Dividend

Assuming the 90 days horizon Loomis Sayles is expected to generate 1.72 times less return on investment than Crawford Dividend. In addition to that, Loomis Sayles is 1.06 times more volatile than Crawford Dividend Opportunity. It trades about 0.04 of its total potential returns per unit of risk. Crawford Dividend Opportunity is currently generating about 0.07 per unit of volatility. If you would invest  4,512  in Crawford Dividend Opportunity on September 23, 2024 and sell it today you would earn a total of  457.00  from holding Crawford Dividend Opportunity or generate 10.13% return on investment over 90 days.

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

Loomis Sayles Small  vs.  Crawford Dividend Opportunity

Loomis Sayles Small

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Loomis Sayles Small 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.

Crawford Dividend

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Crawford Dividend Opportunity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Crawford Dividend 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 Crawford Dividend

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

The idea behind Loomis Sayles Small and Crawford Dividend Opportunity 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.