Correlation Between Mainstay Large and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Mainstay Large and Loomis Sayles 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 Mainstay Large and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Large Cap and Loomis Sayles Small, you can compare the effects of market volatilities on Mainstay Large and Loomis Sayles 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 Mainstay Large with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Loomis Sayles.
Diversification Opportunities for Mainstay Large and Loomis Sayles
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mainstay and Loomis is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Large Cap and Loomis Sayles Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Small and Mainstay Large 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 Mainstay Large Cap are associated (or correlated) with Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Small has no effect on the direction of Mainstay Large i.e., Mainstay Large and Loomis Sayles go up and down completely randomly.
Pair Corralation between Mainstay Large and Loomis Sayles
Assuming the 90 days horizon Mainstay Large Cap is expected to generate 1.21 times more return on investment than Loomis Sayles. However, Mainstay Large is 1.21 times more volatile than Loomis Sayles Small. It trades about 0.07 of its potential returns per unit of risk. Loomis Sayles Small is currently generating about 0.05 per unit of risk. If you would invest 819.00 in Mainstay Large Cap on September 26, 2024 and sell it today you would earn a total of 417.00 from holding Mainstay Large Cap or generate 50.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.8% |
Values | Daily Returns |
Mainstay Large Cap vs. Loomis Sayles Small
Performance |
Timeline |
Mainstay Large Cap |
Loomis Sayles Small |
Mainstay Large and Loomis Sayles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mainstay Large and Loomis Sayles
The main advantage of trading using opposite Mainstay Large and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.Mainstay Large vs. The National Tax Free | Mainstay Large vs. Oklahoma Municipal Fund | Mainstay Large vs. Ishares Municipal Bond | Mainstay Large vs. Baird Strategic Municipal |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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