Correlation Between Natixis Oakmark and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Natixis Oakmark 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 Natixis Oakmark and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natixis Oakmark International and Loomis Sayles Global, you can compare the effects of market volatilities on Natixis Oakmark 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 Natixis Oakmark with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natixis Oakmark and Loomis Sayles.
Diversification Opportunities for Natixis Oakmark and Loomis Sayles
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Natixis and Loomis is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Natixis Oakmark International and Loomis Sayles Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Global and Natixis Oakmark 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 Natixis Oakmark International 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 Global has no effect on the direction of Natixis Oakmark i.e., Natixis Oakmark and Loomis Sayles go up and down completely randomly.
Pair Corralation between Natixis Oakmark and Loomis Sayles
Assuming the 90 days horizon Natixis Oakmark International is expected to generate 1.51 times more return on investment than Loomis Sayles. However, Natixis Oakmark is 1.51 times more volatile than Loomis Sayles Global. It trades about 0.25 of its potential returns per unit of risk. Loomis Sayles Global is currently generating about 0.08 per unit of risk. If you would invest 1,317 in Natixis Oakmark International on December 2, 2024 and sell it today you would earn a total of 136.00 from holding Natixis Oakmark International or generate 10.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Natixis Oakmark International vs. Loomis Sayles Global
Performance |
Timeline |
Natixis Oakmark Inte |
Loomis Sayles Global |
Natixis Oakmark and Loomis Sayles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Natixis Oakmark and Loomis Sayles
The main advantage of trading using opposite Natixis Oakmark and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natixis Oakmark 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.Natixis Oakmark vs. Cref Inflation Linked Bond | Natixis Oakmark vs. Tiaa Cref Inflation Link | Natixis Oakmark vs. Tiaa Cref Inflation Linked Bond | Natixis Oakmark vs. American Funds Inflation |
Loomis Sayles vs. Loomis Sayles Global | Loomis Sayles vs. Loomis Sayles Global | Loomis Sayles vs. Ivy Asset Strategy | Loomis Sayles vs. Loomis Sayles Strategic |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |