Correlation Between Loomis Sayles and Allianzgi Nfj

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

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

Diversification Opportunities for Loomis Sayles and Allianzgi Nfj

-0.15

Correlation Coefficient

Loomis Sayles  Allianzgi Nfj

Good diversification

The 3 months correlation between Loomis and Allianzgi is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Limited and Allianzgi Nfj Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Nfj Mid 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 Limited are associated (or correlated) with Allianzgi Nfj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Nfj Mid has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Allianzgi Nfj go up and down completely randomly.

Pair Corralation between Loomis Sayles and Allianzgi Nfj

Assuming the 90 days horizon Loomis Sayles Limited is expected to generate 0.18 times more return on investment than Allianzgi Nfj. However, Loomis Sayles Limited is 5.7 times less risky than Allianzgi Nfj. It trades about 0.21 of its potential returns per unit of risk. Allianzgi Nfj Mid Cap is currently generating about 0.0 per unit of risk. If you would invest  1,068  in Loomis Sayles Limited on December 30, 2024 and sell it today you would earn a total of  20.00  from holding Loomis Sayles Limited or generate 1.87% return on investment over 90 days.

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

Loomis Sayles Limited  vs.  Allianzgi Nfj Mid Cap

Loomis Sayles Limited

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Loomis Sayles Limited are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. 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.

Allianzgi Nfj Mid

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allianzgi Nfj Mid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Allianzgi Nfj 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 Allianzgi Nfj

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

The idea behind Loomis Sayles Limited and Allianzgi Nfj Mid Cap 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.