Correlation Between Loomis Sayles and Small Pany
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Loomis Sayles Small vs. Small Pany Fund
Performance |
Timeline |
Loomis Sayles Small |
Small Pany Fund |
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.Loomis Sayles vs. Ssga International Stock | Loomis Sayles vs. Northern Small Cap | Loomis Sayles vs. American Beacon Large | Loomis Sayles vs. Loomis Sayles Small |
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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.
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