Correlation Between Pimco Total and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Pimco Total 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 Pimco Total and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Total Return and Loomis Sayles E, you can compare the effects of market volatilities on Pimco Total 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 Pimco Total with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Total and Loomis Sayles.
Diversification Opportunities for Pimco Total and Loomis Sayles
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pimco and Loomis is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Total Return and Loomis Sayles E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles E and Pimco Total 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 Pimco Total Return 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 E has no effect on the direction of Pimco Total i.e., Pimco Total and Loomis Sayles go up and down completely randomly.
Pair Corralation between Pimco Total and Loomis Sayles
Assuming the 90 days horizon Pimco Total Return is expected to generate 0.94 times more return on investment than Loomis Sayles. However, Pimco Total Return is 1.06 times less risky than Loomis Sayles. It trades about 0.05 of its potential returns per unit of risk. Loomis Sayles E is currently generating about 0.03 per unit of risk. If you would invest 795.00 in Pimco Total Return on December 1, 2024 and sell it today you would earn a total of 73.00 from holding Pimco Total Return or generate 9.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Pimco Total Return vs. Loomis Sayles E
Performance |
Timeline |
Pimco Total Return |
Loomis Sayles E |
Pimco Total and Loomis Sayles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pimco Total and Loomis Sayles
The main advantage of trading using opposite Pimco Total and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Total 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.Pimco Total vs. Ms Global Fixed | Pimco Total vs. Dodge International Stock | Pimco Total vs. Pro Blend Servative Term | Pimco Total vs. Qs International Equity |
Loomis Sayles vs. Angel Oak Ultrashort | Loomis Sayles vs. T Rowe Price | Loomis Sayles vs. Alpine Ultra Short | Loomis Sayles vs. Transam Short Term Bond |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
CEOs Directory Screen CEOs from public companies around the world |