Correlation Between Loomis Sayles and Small Pany

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Small Pany 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 Small Pany 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 Small Pany Fund, you can compare the effects of market volatilities on Loomis Sayles and Small Pany 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 Small Pany. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Small Pany.

Diversification Opportunities for Loomis Sayles and Small Pany

0.81
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Loomis and Small is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Small and Small Pany Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Pany Fund 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 Small Pany. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Pany Fund has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Small Pany go up and down completely randomly.

Pair Corralation between Loomis Sayles and Small Pany

Assuming the 90 days horizon Loomis Sayles Small is expected to generate 0.9 times more return on investment than Small Pany. However, Loomis Sayles Small is 1.11 times less risky than Small Pany. It trades about 0.04 of its potential returns per unit of risk. Small Pany Fund is currently generating about 0.02 per unit of risk. If you would invest  2,339  in Loomis Sayles Small on September 23, 2024 and sell it today you would earn a total of  122.00  from holding Loomis Sayles Small or generate 5.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Loomis Sayles Small  vs.  Small Pany Fund

 Performance 
       Timeline  
Loomis Sayles Small 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.
Small Pany Fund 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Small Pany Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Loomis Sayles and Small Pany Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Loomis Sayles and Small Pany

The main advantage of trading using opposite Loomis Sayles and Small Pany positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Small Pany 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 Small Pany will offset losses from the drop in Small Pany's long position.
The idea behind Loomis Sayles Small and Small Pany 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments