Correlation Between Loomis Sayles and Rbb Fund

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

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

Diversification Opportunities for Loomis Sayles and Rbb Fund

-0.67

Correlation Coefficient

Loomis Sayles  Rbb Fund

Excellent diversification

The 3 months correlation between Loomis and Rbb is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Global and Rbb Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbb 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 Global are associated (or correlated) with Rbb Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbb Fund has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Rbb Fund go up and down completely randomly.

Pair Corralation between Loomis Sayles and Rbb Fund

Assuming the 90 days horizon Loomis Sayles is expected to generate 2.73 times less return on investment than Rbb Fund. In addition to that, Loomis Sayles is 1.99 times more volatile than Rbb Fund . It trades about 0.02 of its total potential returns per unit of risk. Rbb Fund is currently generating about 0.08 per unit of volatility. If you would invest  890.00  in Rbb Fund on September 26, 2024 and sell it today you would earn a total of  82.00  from holding Rbb Fund or generate 9.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Loomis Sayles Global  vs.  Rbb Fund

Loomis Sayles Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Loomis Sayles Global 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.

Rbb Fund

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Rbb Fund are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Rbb Fund 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 Rbb Fund

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

The idea behind Loomis Sayles Global and Rbb 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.